Macro Analysis /
Czech Republic

Czech Republic: Ruling coalition submits final version of Kurzarbeit bill to parliament

    Research Team
    EmergingMarketWatch
    12 April 2021
    • New scheme to reimburse 80% of net wages, capped at 1.5 average national wages
    • Government will decide when to activate scheme, in consultation with social partners
    • New scheme not to prevent layoffs, but employers will need to give at least a 3-month notice
    • Projected monthly fiscal cost is a maximum of CZK 2.6bn in case of restricted business activity; base scenario suggests monthly cost around CZK 290mn
    • Kurzarbeit scheme may take effect as of May, since ANO and CSSD requested emergency legislative procedure