Czech Republic Changes Sick Pay, Social Security Contributions

A pharmacist sits with a customer in the consultation area and discusses his prescription and choice of medication viewing the details on a digital tablet, senior woman and granddaughter standing in background, drug, pharmacy

From 1 Jul 2019, Czech employers will have to pay sick leave from the first day of an employee’s absence from work — the current law requires a three-day waiting period before sick pay starts. The change features in Act 32/2019 (Czech).

To help reduce the cost of the change, employers’ social security contributions will be reduced to 2.1% (down from 2.3%) calculated on the employees’ eligible pay. The amount of sick pay during the first 14 days’ absence remains unchanged — at 60% of average covered earnings — after which the employee will receive short-term disability benefits.

Related Resources

  • Act 32/2019 (Czech) (Czech official journal, 7 Feb 2019)
Fiona Webster
by Fiona Webster

Principal, Mercer’s Law & Policy Group

Stephanie Rosseau
by Stephanie Rosseau

Principal, Mercer’s Law & Policy Group

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