Consolidated Report on the application by the Czech Republic of ILO Conventions Nos 12, 17, 42, 102, 128, 130 & the European Code of Social Security, 2019Consolidated Report on the application by the Czech Republic of ILO Conventions Nos 12, 17, 42, 102, 128, 130 & the European Code of Social Security, 2020

Consolidated information compiled from the following Government Reports on these ratified ILO Conventions on Social Security and the European Code of Social Security:

Up-to-date ILO Conventions[1]

·                Social Security (Minimum Standards) Convention, 1952 (No.102)

·                Invalidity, Old-Age and Survivors' Benefits Convention, 1967 (128)

·                Medical Care and Sickness Benefits Convention, 1969 (130)

ILO Conventions requiring further action to ensure continued and future relevance

·                Workmen’s Compensation (Agriculture) Convention, 1921 (No.12)

Outdated ILO Conventions

·                Workmen's Compensation (Accidents) Convention, 1925 (17)

·                Workmen’s Compensation (Occupational Diseases) Convention, 1934 (42)

·                European Code of Social Security

Ø  Please enter any modifications or new information using TRACK CHANGES function in MICROSOFT WORD.

Ø  Where the text of the corresponding provisions of the ECSS and C102 has the same wording, the wording of C102 is taken as the basis, with eventual changes in the ECSS reproduced in brackets.

Ø  Questions of the Report Form on the European Code of Social Security (ECSS) or on ILO Conventions (e.g. RF/C102) for which information is lacking are reproduced in a box below the respective provisions.

Ø  Replies to pending questions raised by the CEACR may be provided in a box below the CEACR comments.


Summary table

Category

Information available

Information missing / questions raised by the CEACR

Part II. Medical Care

II-1. Regulatory framework

Art.7 C102/ECSS, Art.8 C130

II-2. Contingencies covered

Art.8 C102/ECSS, Art.7 C130

II-3. Persons Protected

Art.9 C102/ECSS, Art. 10, 12 C130 *

II-4. Types of Benefits

Art.10(1) C102/ECSS, Art.13 C130

II-5. Cost-sharing

Art.10(2)C102/ECSS,  Art.17 C130

II-6. Objectives of Medical Care

Art.10(3) C102/ECSS, Art.9 C130

II-7. Promotion of the general health service

Art.10(4) C102/ECSS

II-8. Qualifying period

Art.11 C102/ECSS, Art.15 C130

II-9. Minimum duration of Benefit

Art.12 C102/ECSS, Art.16 C130

II-10. Suspension of Benefit

Art.69 C102 / Art.68 ECSS              Art.28 C130

II-11. Right of complaint and appeal

Art.70 C102, Art. 69 ECSS

Art.29 C130

II-12. Financing and Administration

Art.71*, 72 C102, Art.70*, 71 ECSS

Art.30,31 C130

Part III. Sickness Benefit

III-1. Regulatory framework

Art.13 ECSS, Art.18 C130

III-2. Contingencies covered

Art.14 ECSS, Art.7(b) C130

III-3. Persons Protected

Art.15 ECSS, Art.19 C130*

III-4. Level and Calculation of Benefit

Art.16 ECSS, Art.21 C130*

III-5. Qualifying period

Art.17 ECSS, Art.25 C130

III-6. Minimum duration of Benefit

Art.18 ECSS, Art.26 C130

III-7. Funeral Benefit

Art.27 ECSS

III-8. Suspension of Benefit

Art.68 ECSS, Art.28 C130

III-9. Right of complaint and appeal

Art.69 ECSS, Art.29 C130

III-10. Financing and Administration

Art.70*, 71 ECSS, Art.30,31 C130

Part IV. Unemployment Benefit

IV-1. Regulatory framework

Art.19 ECSS

IV-2. Contingency covered

Art.20 ECSS

IV-3. Persons Protected

Art.21 ECSS*

IV-4. Level and Calculation of Benefit

Art.22 ECSS*

IV-5. Qualifying period

Art.23 ECSS

IV-6. Minimum duration of Benefit

Art.24 ECSS

IV-7. Suspension of Benefit

Art.68 ECSS

IV-8. Right of complaint and appeal

Art.69 ECSS

IV-9. Financing and Administration

Art.70*, 71 ECSS

Part V. Old-Age Benefit

V-1. Regulatory framework

Art.25 ECSS, Art.14 C128

V-2. Contingency covered

Art.26 ECSS, Art.15 C128

V-3. Persons Protected

Art.27 ECSS, Art.16 C128 *

V-4. Level and Calculation of Benefit

Art.28 ECSS, Art.17 C128*

V-5. Adjustment of Benefit

Art.65(10)ECSS, Art.66(8)ECSS, Art.29 C128*

V-6. Qualifying period

Art.29 ECSS, Art.18 C128

V-7. Duration of Benefit

Art.30 ECSS, Art.19 C128

V-8. Suspension of Benefit

Art.32 C128, Art.68 ECSS

Art.32-33 C128

V-9. Right of complaint and appeal

Art.69 ECSS, Art.34 C128

V-10. Financing and Administration

Art.70*,71 ECSS, Art.30,35,36 C128

Part VI. Employment Injury Benefit

VI-1. Contingencies and regulatory framework

Art.1 C12, Art.1 C17, Art.1(1) C42

VI-2. Persons Protected

Art.2 C17

VI-3. Definition of Occupational diseases

Art.2 C42

VI-4. Benefits in cash

Art.5,7 C17, Art.1(2) C42

VI-5. Benefits in kind

Art.9 C17, Art.10(1) C17

VI-6. Waiting period

Art.6 C17

VI-7. Insolvency of employer

Art.11 C17

VI-8. Administration and Financing

Art.8,10(2) C17

Part VII. Family Benefit

VII-1. Regulatory framework

Art.39 C102/ECSS

VII-2. Contingency covered

Art.40 C102/ECSS

VII-3. Persons Protected

Art.41 C102/ECSS*

VII-4. Types of Benefits

Art.42  C102/ECSS

VII-5. Qualifying period

Art.43  C102/ECSS

VII-6. Level and Calculation of Benefit

Art.44  C102/ECSS*

VII-7. Duration of Benefit

Art.45 C102/ECSS

VII-8. Suspension of Benefit

Art.69 C102Art.68 ECSS

VII-9. Right of complaint and appeal

Art.70 C102, Art. 69 ECSS

VII-10. Financing and Administration

Art.71,72 C102, Art.70,71 ECSS

Part VIII. Maternity Benefit

VIII - 1. Regulatory framework

Art.46 C102/ECSS

VIII - 2. Contingency covered

Art.47 C102/ECSS

VIII - 3. Persons protected

Art.48 C102/ECSS*

VIII - 4. Types of Benefit

Art.49 C102/ECSS

VIII - 5. Level and Calculation of Benefit

Art.50 C102/ECSS*

VIII - 6. Qualifying period

Art.51 C102/ECSS

VIII - 7. Minimum duration of Benefit

Art.52 C102/ECSS

VIII - 8. Suspension of Benefit

Art.69 C102, Art.68 ECSS

VIII - 9. Right of complaint and appeal

Art.70 C102. Art.69 ECSS

VIII - 10. Financing and Administration

Art.71*,72 C102, Art.70*,71 ECSS

Part IX. Invalidity Benefit

IX-1. Regulatory framework

Art.53 C102/ECSS

IX-2. Contingency covered

Art.54 C102/ECSS

IX-3. Persons Protected

Art.55 C102/ECSS*

IX-4. Level and Calculation of Benefit

Art.56 C102/ECSS*

IX-5. Adjustment of Benefit

Art.65(10)C102/ECSS *

Art.66 (8) C102/ECSS

IX-6. Qualifying period

Art.57 C102/ECSS

IX-7. Duration of Benefit

Art.58 C102/ECSS

IX-8. Suspension of Benefit

Art.69 C102, Art.68 ECSS

IX-9 Right of complaint and appeal

Art.70 C102, Art.69 ECSS

IX-10. Financing and Administration

Art.71*,72 C102, Art.70*,71 ECSS

Part X. Survivors’ Benefit

X-1. Regulatory framework

Art.59 C102/ECSS

X-2. Contingency covered

Art.60 C102/ECSS

X-3. Persons Protected

Art.61 C102/ECSS*

X-4. Level and Calculation of Benefit

Art.62 C102/ECSS*

X-5. Adjustment of Benefit

Art.65(10) C102/ECSS*

Art.66 (8) C102/ECSS

X-6. Qualifying period

Art.63 C102/ECSS

X-7. Duration of Benefit

Art.64 C102/ECSS

X-8. Suspension of Benefit

Art.69 C102 /Art.68 ECSS

X-9. Right of complaint and appeal

Art.70 C102, Art.69 ECSS

X-10. Financing and Administration

Art.71*,72 C102, Art.70*,71 ECSS

Part XI. Standards to be complied with by periodical payments

Art. 65,66 C102/ECSS

Part XII. Equality of treatment of non-national residents

Art.32 C130, Art. 68. C102

* Please update statistical data, in accordance with the Report form for C102/ECSS/C128/C130.

Part I. General provisions

The Part I “General provisions” comprises the following explanatory and procedural clauses:

§  Articles 1-6 C102

§  Articles 1-6 ECSS

Article 6 – Voluntary insurance schemes

The report does not cover the protection provided under voluntary insurance scheme.

§  Articles 1-6 C128

§  Articles 1-6 C130


Part II. Medical Care

The Czech Republic has accepted the obligations resulting from Part II of C102, Part II of C130 and Part II of the ECSS.

Category

Information available

Information missing / questions raised by the CEACR

II-1. Regulatory framework

Art.7 C102/ECSS, Art.8 C130

II-2. Contingencies covered

Art.8 C102/ECSS, Art.7 C130

II-3. Persons Protected

Art.9 C102/ECSS, Art. 10, 12 C130*

II-4. Types of Benefits

Art.10(1) C102/ECSS  

Art.13 C130

II-5. Cost-sharing

Art.10(2)C102/ECSS, Art.17 C130

II-6. Objectives of Medical Care

Art.10(3) C102/ECSS, Art.9 C130

II-7. Promotion of the general health service

Art.10(4) C102/ECSS

II-8. Qualifying period

Art.11 C102/ECSS, Art.15 C130

II-9. Minimum duration of Benefit

Art.12 C102/ECSS, Art.16 C130

II-10. Suspension of Benefit

Art.69 C102 / Art.68 ECSS           Art.28 C130

II-11. Right of compliant and appeal

Art.70 C102, Art. 69 ECSS

Art.29 C130

II-12. Financing and Administration

Art.71*,72 C102, Art.70*,71 ECSS

Art.30,31 C130

* Please update statistical data, in accordance with the Report form for C102/ECSS/ C130.

List of applicable legislation

§  Act No. 48/1997 Coll., providing for Public Health Insurance and on Changes and Amendments to Certain Related Acts, as amended

§  Act No. 372/2011 Coll., regulating Health Services and Conditions for Their Providing (Health Services Act)

§  Act No. 285/2002 Coll., to regulate the Donation, Sampling and Transplantation of Tissues and Organs and on Changes to Certain Acts (the Transplantation Act), as amended

·         Act No. 258/2000 Coll., on Public Health Protection, was updated in the given period by Acts No. 466/2011 Coll., 298/2011 Coll., 375/2011 Coll., 115/2012 Coll., 333/2012 Coll., 223/2013 Coll. (part), 223/2013 Coll., 223/2013 Coll. (part), 64/2014 Coll., 247/2014 Coll., 250/2014 Coll., 252/2014 Coll., 82/2015 Coll., 267/2015 Coll., 267/2015 Coll. (part)

·         https://portal.gov.cz/app/zakony/zakonPar.jsp?idBiblio=49577&nr=258~2F2000&rpp=15#local-content

·         Act No. 20/1966 Coll., on People's Health Care was replaced on 1 April 2014 with Act No. 372/2011 Coll.,  Health Services Act, amended by Acts No. 167/2012 Coll., 437/2012 Coll., 66/2013 Coll., 303/2013 Coll., 60/2014 Coll., 205/2015 Coll., 126/2016 Coll.

https://portal.gov.cz/app/zakony/zakonPar.jsp?idBiblio=75500&nr=372~2F2011&rpp=15#local-content

·         Act No. 48/1997 Coll., on Public Health Insurance, was amended in the given period by Acts No. 298/2011 Coll., 365/2011 Coll., 1/2012 Coll., 369/2011 Coll., 458/2011 Coll., 275/2012 Coll., 401/2012 Coll., 403/2012 Coll., 44/2013 Coll., 238/2013 Coll., 238/2013 Coll. (part), 60/2014 Coll., 109/2014 Coll., 458/2011 Coll., 60/2014 Coll. (part), 250/2014 Coll., 256/2014 Coll., 267/2014 Coll., 1/2015 Coll., 200/2015 Coll., 314/2015 Coll., 200/2015 Coll. (part)

https://portal.gov.cz/app/zakony/zakonPar.jsp?idBiblio=45178&nr=48~2F1997&rpp=15#local-content

·         Act No. 592/1992 Coll., on Public Health Insurance Premiums, was amended in the given period by Acts No. 138/2011 Coll., 298/2011 Coll., 329/2011 Coll., 369/2011 Coll., 401/2012 Coll., 500/2012 Coll., 11/2013 Coll., 342/2013 Coll., 458/2011 Coll., 344/2013 Coll., 109/2014 Coll., 458/2011 Coll., 401/2012 Coll. (part), 500/2012 Sb (part), 250/2014 Coll., 267/2014 Coll., 200/2015 Coll.

https://portal.gov.cz/app/zakony/zakonPar.jsp?idBiblio=40381&nr=592~2F1992&rpp=15#local-content

·         Act No. 551/1991 Coll., on the General Health Insurance Company, was updated in the given period by Acts No. 298/2011 Coll., 369/2011 Coll., 458/2011 Coll. (part), 60/2014 Coll., 109/2014 Coll., 458/2011 Coll., 256/2014 Coll., 200/2015 Coll., 128/2016 Coll.

https://portal.gov.cz/app/zakony/zakonPar.jsp?idBiblio=39599&nr=551~2F1991&rpp=15#local-content

·         Act No. 280/1992 Coll., on Ministerial, Sectoral, Enterprise and Other Insurance Companies, was updated in the given period by Acts No. 298/2011 Coll., 369/2011 Coll., 458/2011 Coll. (part), 60/2014 Coll., 109/2014 Coll., 458/2011 Coll., 256/2014 Coll., 200/2015 Coll., 128/2016 Coll.

https://portal.gov.cz/app/zakony/zakonPar.jsp?idBiblio=40001&nr=280~2F1992&rpp=15#local-content

·         Act No. 160/1992 Coll., on Health Care in Non-Governmental Healthcare Facilities, was derogated on 1 April 2014 and replaced with Act No. 372/2011 Coll., Health Services Act.

·         Decree No. 537/2006 Coll., on Vaccination against Infectious Diseases, as amended by Decree No. 40/2016 Coll.

https://portal.gov.cz/app/zakony/zakonPar.jsp?idBiblio=63208&nr=537~2F2006&rpp=15#local-content

II – 1. Regulatory framework

Article 7. C102 and ECSS

Each Member (Contracting Party) for which this Part of this Convention (Code) is in force shall secure to the persons protected the provision of benefit in respect of a condition requiring medical care of a preventive or curative nature in accordance with the following Articles of this Part.

Article 8. C130

Each Member shall secure to the persons protected, subject to prescribed conditions, the provision of medical care of a curative or preventive nature in respect of the contingency referred to in subparagraph (a) of Article 7.

Right to health care without direct payment is enshrined in the Charter of Fundamental Rights and Freedoms, which is the fundamental law, and in Act No. 48/1997 Coll., the Public Health Insurance Act (hereinafter referred to as the „Public Health Insurance Act"). According to the Public Health Insurance Act, each insured individual suffering from any disease or injury, regardless of its causes, has the right to health care without direct payment. The same applies to pregnancy, childbirth and its consequences.

The state and the health insurance companies that are public institutions in the Czech Republic take measures to ensure that health care covered by public health insurance is available to a wide range of people. In the Czech Republic a financial limit in terms of cost of care which the insured person may draw for a certain time period is not set. The so-called waiting periods are not established, so the insured individual is entitled to a full range of covered health care insurance since the first day of health insurance. There are no time limits regarding the length of the health care utilization until health insurance lasts. Health insurance cannot be terminated by a health insurance company, unless there is some kind of facts foreseen by the law (termination of permanent residence in the Czech Republic).

II - 2. Contingencies covered

Article 8. C102 and ECSS

The contingencies covered shall include any morbid condition, whatever its cause, and pregnancy and confinement and their consequences.

Article 7. C130

The contingencies covered shall include:

(a) need for medical care of a curative nature and, under prescribed conditions, need for medical care of a preventive nature.

The Public Health Insurance Act No. 48/1997 (as amended) defines the scope of health care in detail, which is covered by public health insurance, i.e. the scope of covered contingencies referred to in this Article. As for, among others, preventive care, continuing care (long term illness), diagnostic, treatment, pharmacy, clinical and pharmaceutical, medical rehabilitation, consultative, nursing, palliative and others. Covered health care also includes, among others, the provision of medicines, food for special medical purposes, medical devices and dental products. The scope of the covered health care provides protection, recovery and improvement of the health of protected persons as well as their ability to work and ability to satisfy personal needs.

NB: provisions concerning the different forms of preventive medical care are established in §29, 30 of the chapter Preventive care (Preventivní péče) of Act №48/1997.

II - 3. Persons protected

Article 9. C102 and ECSS

The persons protected shall comprise:

(a) prescribed classes of employees, constituting not less than 50 per cent of all employees, and also their wives and children; or

(b) prescribed classes of the economically active population, constituting not less than 20 per cent of all residents, and also their wives and children; or

(c) prescribed classes of residents, constituting not less than 50 per cent of all residents.

Article 10. C130

The persons protected in respect of the contingency referred to in subparagraph (a) of Article 7 shall comprise:

(a) all employees, including apprentices, and the wives and children of such employees; or

(b) prescribed classes of the economically active population, constituting not less than 75 per cent of the whole economically active population, and the wives and children of persons in the said classes; or

(c) prescribed classes of residents constituting not less than 75 per cent of all residents.

Article 12. C130

Persons who are in receipt of a social security benefit for invalidity, old age, death of the breadwinner or unemployment, and, where appropriate, the wives and children of such persons, shall continue to be protected, under prescribed conditions, in respect of the contingency referred to in subparagraph (a) of Article 7.

The Czech Republic refers to letter c) of the Article 9 of the ECSS.

The group of protected persons is determined in Section 2 of the Public Health Insurance Act.

According to this law, insured by the health insurance are all the persons who have permanent residence in the Czech Republic, and persons who do not have permanent residence in the Czech Republic but they are employees of an employer which has its registered office or permanent residence in the territory of the Czech Republic.

The group of protected persons remains unchanged.

The range of the covered individuals includes every person who has permanent residency in the Czech Republic, even if they are not economically active. Each of these individuals has individual health insurance. Act No 48/1997 Coll. on Health Insurance and on Changes and Amendments to Certain Related Acts, as amended, designates the individuals, for whom the insurance contribution payer is the state using funds from the state budget.

The state pays the health insurance contributions for the following individuals from the state budget:

§  Dependent children; the dependence of a child is assessed according to the State Social Support Act;

§  Recipients of benefits from pension insurance who were awarded a benefit prior to 1 January 1993 according to the regulations of the Czech and Slovak Federative Republic and after 31 December 1992 according to the regulations of the Czech Republic. For the purposes of the law, individuals according to the previous sentence are also considered to be beneficiaries in the months when they are not entitled to the payment of a benefit according to the pension insurance regulations;

§  Recipients of family allowances;

§  Women on maternity and parental leave and individuals receiving differential allowances in maternity according to the sickness insurance regulations;

§  Jobseekers, including jobseekers who have accepted short-term employment;

§  Individuals receiving assistance in material need and individuals jointly assessed with them under the condition that they are not in any employment or similar relations and do not carry out any independent gainful activities, are not listed in the records of jobseekers and are not recipients of an old age benefit, an invalidity benefit for level-three invalidity, a widows’ or widowers’ benefit or a parental benefit for a dependent child;

§  Individuals who are dependent on the care of another entity at level II (medium dependence) or level III (high dependence) or level IV (full dependence) and the individuals caring for such individuals and individuals caring for individuals under 10 years of age who are dependent on the care of another individual at level I (slight dependence);

§  Individuals performing basic (replacement) service in the armed forces, other service or civil service and individuals called up for military exercises;

§  Individuals in detention or custody or individuals serving a term of imprisonment;

§  Individuals with permanent residency in the territory of the Czech Republic who are not employees or self-employed persons and are the recipients of sickness insurance benefits;

§  Individuals who have level-three invalidity or who have reached the age required for an old age benefit, but do not meet the further conditions for the awarding of an invalidity benefit for level-three invalidity or an old age benefit and do not have any earnings from employment or independent gainful activities and do not receive a pension from abroad or if any such pension does not exceed the amount of the minimum wage;

§  Individuals who provide all-day personal care to at least one child up to the age of seven or to at least two children up to the age of 15. Only one person is considered to be such an individual, i.e. either the father or the mother of the child or the individual who has assumed the permanent foster care of the child, if they do not have any earnings from employment or from any independent gainful activities;

§  Minors placed in educational institutions for the purpose of their upbringing and guardianship;

§  Individuals providing long-term voluntary services at an average of at least 20 hours a calendar week upon the basis of a contract concluded with an organization which has been accredited by the Ministry of Internal Affairs;

§  Foreigners who have been granted a residency permit for the territory of the Czech Republic for the purpose of the provision of temporary protection according to the special legal regulation, if they have no earnings from employment or from independent gainful activities;

§  Applicants for international protection and their children born in the territory, foreigners who have been issued a residency visa for more than 90 days for the purpose of residency and their children born in the territory, if they have no earnings from employment or from independent gainful activities.

Statistical information 2019:

Number of covered persons:       

10,541,554 persons (the average number of  insured persons in 2019)

Population:

10,693,939 persons (as of December 31, 2019)

Coverage in total

98.58%

Statistical information 2018:

Number of covered persons:       

10,509,486 persons (the average number of  insured persons in 2018)

Population:

10,649,800 persons (as of December 31, 2018)

Coverage in total

98.68%

Women on maternity and parental leave and dependent children fall into the category of protected individuals who are entitled to medical care according to Article 10. Primarily derived in-kind benefits do not exist in the Czech Republic. Women and children within the personal scope of public health insurance are entitled to medical care according to the law.

Statistical information 2019:

Population:

10,649,800 persons (as of December 31, 2018)

Coverage in total

98.72%

Statistical information 2016:

Population:

10,578,820 persons (as of December 31, 2016)

Coverage in total

98.72%

Source: Ministry of Health.

II - 4. Types of Benefit

§1. Article 10. C102 and ECSS

The benefit shall include at least:

(a) in case of a morbid condition,

(i) general practitioner care, including domiciliary visiting;

(ii) specialist care at hospitals for in patients and out patients, and such specialist care as may be available outside hospitals;

(iii) the essential pharmaceutical supplies as prescribed by medical or other qualified practitioners; and

(iv) hospitalisation where necessary; and

(b) in case of pregnancy and confinement and their consequences,

(i) pre natal, confinement and post natal care either by medical practitioners or by qualified midwives; and

(ii) hospitalisation where necessary.

Article 13. C130

The medical care referred to in Article 8 shall comprise at least:

(a) general practitioner care, including domiciliary visiting;

(b) specialist care at hospitals for in-patients and out-patients, and such specialist care as may be available outside hospitals;

(c) the necessary pharmaceutical supplies on prescription by medical or other qualified practitioners;

(d) hospitalisation where necessary;

(e) dental care, as prescribed; and

(f) medical rehabilitation, including the supply, maintenance and renewal of prosthetic and orthopaedic appliances, as prescribed.

                                   

The scope of health services provided within the Czech public health insurance system is defined in Part Five of the Public Health Insurance Act No. 48/1997(as amended). The benefits include general practitioner care, including domiciliary visiting, specialist care for hospitalized persons provided by specialists, care for persons in hospitals attending outside the hospital, basic medical prescription providing, care before, during and after childbirth provided by a doctor and hospitalization.

The scope of provided health services, to which an insured person is entitled, is determined by Chapter V of the Public Health Insurance Act, stipulating among others in Section 13:

 (1) The healthcare services provided to an insured person are covered by health insurance with the aim to improve or save his/her health and to alleviate his/her suffering, provided

a) It corresponds to the health conditions of the insured person and to the medical purposes which might be achieved and which are adequate and secure;

b) Is in compliance with contemporary and accessible knowledge of medical science and there is existing evidence proving its effectiveness with regard to the purpose of its provision.

(2) Healthcare services covered by health insurance in the scope and under conditions given by Public Health Insurance Act are as follows:  

a) Preventive, dispensary, diagnostic, therapeutic, therapeutic-rehabilitative, spa therapeutic-rehabilitation care, assessment, nursing and palliative care and care for the donors of blood, tissues or organs and cells in relation to their removal – pursuant to the provisions of the Health Services Act;

b) Provision of medicinal preparations, foods for special medical purposes, medical devices and dental products;

c) Transportation of the insured persons and reimbursement of travel expenses;

d) Collection of blood and tissues, cells and organs for transplantation purposes and any necessary handling (preservation, storage processing and testing);

e) Transportation of a living donor (of tissues, cells and organs for transplantation) to and from the place of collection and the providing of healthcare related to the collection and reimbursement of travel costs;

f) Transport of a deceased donor to and from the place of collection;

g) Transport of the collected tissues, cells and organs;

h) Examination and autopsy of a deceased insured person - including transportation;

i) The stay of a person accompanying an insured person in a medical facility for inpatient care (hospital);

j) Medical care related to pregnancy and the birth of a child whose mother asked for confidentiality in connection with the childbirth; this care is covered by health insurance, where payment is requested by the provider based on an identification of the insured person.

Based on a registered provider’s recommendation in the field of gynaecology and midwifery in connection with an artificial insemination, covered health services include health care - up to three times in a lifetime or if in the first two cases to the female genitals only one human embryo was transferred resulting from artificial insemination outside the woman’s body four times in a lifetime - to

a) Women aged 18 – 39 with bilateral tubal obstruction or

b) Other women aged 22 – 39 (maximum of three times in a lifetime).

Medicinal preparations containing the following the least economically challenging medicinal substances are covered in full from health insurance: a]

a) a] a]    Serum against staphylococcus infections;

b) Serum against diphtheria;

c) Serum against snake venom;

d) Serum against botulism;

e) Serum against gaseous gangrene;

f) Serum against rabies;

g) Immunoglobulin against tetanus;

g) Immunoglobulin against hepatitis B;

h) Tetanus toxoid;

i) Vaccine against staphylococcus infections;

j) Vaccines against rabies;

k) Antidotes (used during the treatment of poisoning with organophosphates, heavy metals and cyanides).

More detailed definition of medicinal preparations and services covered by public health insurance can be found in the above-mentioned law.

II - 5. Cost-sharing

§2. Article 10. C102 and ECSS

The beneficiary or his breadwinner may be required to share in the cost of the medical care the beneficiary receives in respect of a morbid condition; the rules concerning such cost-sharing shall be so designed as to avoid hardship.

Article 17. C130

Where the legislation of a Member requires the beneficiary or his breadwinner to share in the cost of the medical care referred to in Article 8, the rules concerning such cost sharing shall be so designed as to avoid hardship and not to prejudice the effectiveness of medical and social protection.

Update 2018

Once a person becomes an insured individual of the Czech system of public health insurance, using health services is mostly free of charge (exception described in the report). An insured individual may be required to pay for certain medicinal products (either in full or partly). Also, a regulatory fee for using emergency healthcare is required under certain circumstances. However, there are several exceptions to the duty to pay such regulatory fee, i.a. when such a person is in material need. Thus, there are legal ways and protective provisions to prevent hardship without jeopardizing the health or medical services of a person.

The insured person (recipient of health services) is required to pay a regulatory fee. The amount of the regulatory fee can be found in Section 16a of the Public Health Insurance Act.

1)     Regulatory fee for the medical emergency service

According to Section 16a par. 1 of the Act, the insured individual or his/her legal representative shall pay the regulatory fee of CZK 90 to the respective provider of services for medical emergency services, including emergency service in stomatology (hereinafter referred to as "emergency service"). This regulatory fee is not paid if the insured person is placed in institutional care facilities for children under 3 years of age, in school facilities for institutional care or institutional protective care or placed for institutional upbringing in homes for persons with disabilities or if the insured person is placed according to a court´s decision in a facility for children in need of immediate assistance, in foster care, in guardianship or care of another person as stipulated by Act No. 89/2012 Coll., the Civil Code. Further, in case of the insured person who proves a decision, notification or certificate issued by the authority providing assistance in material need that he/she is being provided with a benefit which is provided according to Act No. 111/2006 Coll., Assistance in Material Need Act. The document confirming this fact must not be older than 30 days. If the insured person is being provided with social services according to Section 48-50 and Section 52 of Act No. 108/2006 Coll., the Social Services Act, i.e. social services provided in residential care homes for persons with disabilities, in homes for the elderly or in homes with special treatment regime or in health care facilities of inpatient care, under the condition that 15 % of their income (at least 15 % of the income must remain at the client’s disposal after payment for accommodation and meals) is less than CZK 800[2] or if the insured person has no income. Moreover, the regulatory fee is not paid if a doctor within the emergency service found out that the condition of the insured individual requires hospitalization.

In the case of pregnancy, delivery and any consequences thereof, no participation in the costs for the provided healthcare is required. No regulatory fees are paid in relation to the institutional care provided to a newborn child from the day of the birth through to the day of release from the healthcare institution where the child was born or to the day of release from another healthcare institution to which the child was transferred directly after the birth for medical reasons.

In the case of pregnancy, childbirth and its consequences participation in the form of a regulatory fee of CZK 90 for the use of emergency services is required, if that happens, in accordance with the procedure set out above in the point B. (point B = regulatory fee for the medical emergency service).

The Czech Republic can confirm that no participation is required from a pregnant woman when giving birth. First, a regulatory fee is not a participation in costs of healthcare but rather a tool to optimize the usage of healthcare services. Second, if a person uses emergency healthcare and is subsequently admitted to a hospital, no regulatory fee is paid whatsoever. Therefore, pregnant women when giving birth and receiving healthcare in relation to delivery are not required to pay any regulatory fee or share in the costs of healthcare. For details please see the Update 2017, page 26-27.

2)     Other types of regulatory fees

In relation to the providing of the below types of covered medical services,the insured person (or his/her legal representative) shall pay the respective provider (that provided the paid for services) a regulatory fee in the amount:

a)    CZK 30 for a:

§    Visit to doctor during which a clinical examination was performed (hereinafter referred to as "visit") in the fields of general practice medicine (family medicine), general practice medicine for children and adolescents (pediatrician), gynecology and obstetrics, or for visiting a dentist;

§   

b)   CZK 30 for a visit to a clinical psychologist;

c)    CZK 30 for a visit to a clinical speech therapist;

Since 1 January 2015, the regulatory payment of CZK 30 for a visit at a physician's has been cancelled by an amendment to Act No. 48/1997 Coll. on public health insurance. The regulatory payment of CZK 90 for a visit at a medical emergency service has remained.

d)  Per prescription, upon which the first packet of paid and prescribed medicinal preparation or foods for special medical purposes was issued, regardless of the number of paid medicinal preparations or foods for special medical purposes and the prescribed number of packets;-

e) CZK 90 for medical emergency service, including emergency service in stomatology (hereinafter “emergency service”) at weekends or on public holidays and on workdays in the period from 5:00 p.m. to 7:00 a.m. if this are not regular surgery hours of the provider; Regulatory fee is not paid if the insured individual is subsequently taken into inpatient care,

f)  CZK 100 for each day of provided inpatient care including spa therapeutic-rehabilitative care. The day when the insured person was admitted to such care provision and the day of his/her discharge are together counted as one day; This applies also to a person accompanying a child, if the care is covered by health insurance under Section 25 of the Act on Public Health Insurance.

As of January 1, 2014, the obligation to pay a regulatory fee CZK 100 for each day of provided inpatient care including spa therapeutic-rehabilitative care, stipulated in section 16a, subsection f) of the Public Health Service Act, was cancelled.

As of January 1, 2014 (by the judgement of the Constitutional Court of the Czech Republic, promulgated in the Collection of Laws under No 283/2013 Coll., effective as of January 1, 2014) , the obligation to pay a regulatory fee CZK 100 (letter f) of the Report 2013-ECSS)for each day of provided inpatient care including spa therapeutic-rehabilitative care, stipulated in section 16a, subsection f) of the Public Health Service Act, was cancelled.

Since 1 January 2015, the regulatory payment of CZK 30 for a visit at a physician's and per prescription (letter a), b), c) and d) of the Report 2013-ECSS) has been cancelled by an amendment to Act No. 48/1997 Coll. Public Health Insurance Act.

The only regulatory payment of CZK 90 for a visit at a medical emergency service has remained.

The regulatory fee of CZK 90 shall be paid to the respective provider of services for medical emergency services, including emergency service in stomatology (hereinafter referred to as "emergency service"). The regulatory fee is not paid when a doctor within the emergency service found out that the condition of the insured individual requires hospitalization.

Emergency service in stomatology, orthopaedics, otorhinolaryngology, ophthalmologist and other specialists is not considered as medical service connected with pregnancy and delivery. In the case of pregnancy, delivery and any consequences thereof, no participation in the costs for the provided healthcare is required.

The health service provider was not allowed to collect regulatory fees for medical services covered by health insurance and which by law were not a subject to regulatory fee under a fine of CZK 50,000. However, as regulatory fees were abolished (excluding the emergency service fee of CZK 90), the provisions in question of Public Health Insurance was abolished by Act No. 256/2014 with effect from January 1, 2015.

According to Section 16b) subsec. 1 of the Act No 48/1997 Coll, as amended, there are established additional payment limits for medicines of foodstuffs for special medical purposes.

The limit of CZK 1,000 for children under the age of 18 and for insured persons over the age of 65 (always including the calendar year in which they completed the given year of age), the limit of CZK 500 for insured persons over the age of 70 (including the calendar year in which they reached the age of 70) and the limit CZK 5,000 for other insured persons. The health insurance company is obliged to pay the insured or legal representative an amount that exceed the given limit.

Since 1 January 2020, a new category with a limit of CZK 500 has beenintroduced. Insured persons who provedthat they are recipients of a level-three disability pension or that they have been recognised as level-two or level-three disability person, but have not been granted a disability pension for not meeting the conditions of required insurance period; the above mentioned age limits (CZK 500, 1,000 or 5,000) continue to apply.

II - 6. Objectives of Medical Care

§3. Article 10. C102 and ECSS

The benefit provided in accordance with this Article shall be afforded with a view to maintaining, restoring or improving the health of the person protected and his ability to work and to attend to his personal needs.

Article 9. C130

The medical care referred to in Article 8 shall be afforded with a view to maintaining, restoring or improving the health of the person protected and his ability to work and to attend to his personal needs.

The Public Health Insurance Act defines the scope of health care in detail, which is covered by public health insurance (see Art. 8). It can therefore be considered that the scope of covered health care provides protection, recovery and abilities to improve the health of protected persons as well as their ability to work and ability to satisfy personal needs, as required by the paragraph 3 of this Article.

II - 7. Promotion of the general health service

§4. Article 10. C102 and ECSS

The institutions or Government departments administering the benefit shall, by such means as may be deemed appropriate, encourage the persons protected to avail themselves of the general health services placed at their disposal by the public authorities or by other bodies recognised by the public authorities.

Health insurance companies organize and finance preventive programmes for their insured, which try to motivate to prevention and healthy lifestyle in order to improve the health status of the insured and reduce expenditures on health care. In 2015, the previously initiated programme of individualised invitations for screening of tumour diseases was conducted jointly by the Ministry of Health in association with health insurance companies. Under this programme the individual invitations were sent to the selected age groups of the insured for screening examination to detect any potential tumour diseases, which are risk in this group.

Currently, three screening programmes are in place in the Czech Republic (Colorectal Cancer Screening Programme, Breast Cancer Screening Programme and Cervical Cancer Screening Programme).

II - 8. Qualifying period

Article 11. C102 and ECSS

The benefit specified in Article 10 shall, in a contingency covered, be secured at least to a person protected who has completed, or whose breadwinner has completed, such qualifying period as may be considered necessary to preclude abuse.

Article 15. C130

Where the legislation of a Member makes the right to the medical care referred to in Article 8 conditional upon the fulfilment of a qualifying period by the person protected or by his breadwinner, the conditions governing the qualifying period shall be such as not to deprive of the right to benefit persons who normally belong to the categories of persons protected.

In the Czech Republic, the qualifying period during which the person would have to be insured to gain access to covered health care is not established. Since the first day of the public health insurance every insured in case of a covered contingency is eligible for the full range of paid health services, regardless of the duration of insurance and regardless of the amount of premiums paid. It can be stated that the public health insurance system in the Czech Republic is based on a high degree of solidarity which is also reflected in this regard.

II - 9. Minimum duration of Benefit

Article 12. C102 and ECSS

The benefit specified in Article 10 shall be granted throughout the contingency covered, except that, in case of a morbid condition, its duration may be limited to 26 weeks in each case, but benefit shall not be suspended while a sickness benefit continues to be paid, and provision shall be made to enable the limit to be extended for prescribed diseases recognised as entailing prolonged care.

Article 16. C130

1. The medical care referred to in Article 8 shall be provided throughout the contingency.

2. Where a beneficiary ceases to belong to the categories of persons protected, further entitlement to medical care for a case of sickness which started while he belonged to the said categories may be limited to a prescribed period which shall not be less than 26 weeks: Provided that the medical care shall not cease while the beneficiary continues to receive a sickness benefit.

3. Notwithstanding the provisions of paragraph 2 of this Article, the duration of medical care shall be extended for prescribed diseases recognised as entailing prolonged care.

Benefits referred to in Article 10 shall be provided throughout the contingency without time limit, supposing that the insurance of the person lasts.

II - 10. Suspension of Benefit

See under Part XIII-1

Article 28. C130

1. A benefit to which a person protected would otherwise be entitled in compliance with this Convention may be suspended to such extent as may be prescribed:

(a) as long as the person concerned is absent from the territory of the Member;

(b) as long as the person concerned is being indemnified for the contingency by a third party, to the extent of the indemnity;

(c) where the person concerned has made a fraudulent claim;

(d) where the contingency has been caused by a criminal offence committed by the person concerned;

(e) where the contingency has been caused by the serious and wilful misconduct of the person concerned;

(f) where the person concerned, without good cause, neglects to make use of the medical care or the rehabilitation services placed at his disposal, or fails to comply with rules prescribed for verifying the occurrence or continuance of the contingency or for the conduct of beneficiaries;

Access to the public health insurance and medical care is guaranteed to everyone in the Czech Republic, in accordance with the Charter of Fundamental Rights and Freedoms (CFRF). Article 31of the CFRF stipulates:  'Everyone has the right to protection of his/her health. Citizens are entitled, on the basis of public insurance, to free medical care and to medical aid under the conditions provided for by law.' Once a person becomes an insured individual, there may not be any limitation to the health services provided.

Act No. 280/1992 Coll., Regulating the Departmental, Professional, Company and other Health Insurance Companies, as amended, stipulates the legal regulation in force that establishes that all health insurance companies are responsible for providing health services to the persons insured. Generally, the rule is that responsibility for health care is primarily on the respective authorised insurance company with which the person is registered for health insurance and which in case of problems is obliged to seek a solution to the problem of the insured person.

II - 11. Right of complaint and appeal

See under Part XIII-2

Article 29. C130

1. Every claimant shall have a right of appeal in the case of refusal of the benefit or complaint as to its quality or quantity.

2. Where in the application of this Convention a government department responsible to a legislature is entrusted with the administration of medical care, the right of appeal provided for in paragraph 1 of this Article may be replaced by a right to have a complaint concerning the refusal of medical care or the quality of the care received investigated by the appropriate authority.

Everyone has the right to appeal against the decision of the health insurance company concerning the refusal of health service payment, especially:

a) The appeal against the decisions of the rehabilitation physicians of health insurance companies, authorised by law to approve the payment of some (usually financially more expensive) of health services.

b) The appeal in cases of payment of health services out of the territory of the Czech Republic.

In cases where a person feels that he/she has not been given proper health service, necessary quality of care, necessary health service is refused, a person is not satisfied with the behaviour of the doctor, considers the information provided to be inadequate or with his or her approach etc., has a right to file a complaint.

The complaint is filed at the provider of the medical facility, Regional Authority in particular administrative district, at the Czech Medical Chamber, the Czech Dental Chamber etc., depending of the case and the provider.

The system of complaints is governed by the Code of Administrative Procedure, which stipulates its settlement within a maximum of 60 days.

The doctor has a general responsibility to provide the help needed to prevent/reduce the risk of death, the assistance needed to provide the person at risk the help needed to prevent further damage to health, assistance needed to treat injuries or other detrimental health issues. Failure to provide such a care can be classified as a criminal offense under Section 150 (2) of the Act No. 40/2009 Coll., Criminal Code, as amended.  A citizen can also seek judicial protection of an affected right.

II - 12. Financing and Administration

See under Part XIII-3

Article 30. C130

1. Each Member shall accept general responsibility for the due provision of the benefits provided in compliance with this Convention and shall take all measures required for this purpose.

2. Each Member shall accept general responsibility for the proper administration of the institutions and services concerned in the application of this Convention.

Article 31. C130

Where the administration is not entrusted to an institution regulated by the public authorities or to a government department responsible to a legislature:

(a) representatives of the persons protected shall participate in the management under prescribed conditions;

(b) national legislation shall, where appropriate, provide for the participation of representatives of employers;

(c) national legislation may likewise decide as to the participation of representatives of the public authorities.

Health and pension insurance are managed by public administrative authorities.

See also under Part II-6

State administration in social security is controlled and managed by the Ministry of Labour and Social Affairs which also manages the Czech Social Security Administration (i.e., the state administration authorities).

The Ministry of Health and the General Health Insurance Company (established by Act No. 551/1991 Coll.), share the management of the system in the area of health insurance. The management of the General Health Insurance Company is partially appointed by the Government and partially elected by the Czech Parliament.

The representation of employees and employers in the administrative authorities of the individual sectoral, branch, company and other insurance companies (“employee insurance companies”) is regulated by the following provision of Act No. 280/1992 Coll.:

Section 10 of the Act

3) The Managing Board of employee insurance company is made up of 5 members named by the government and 10 members elected by employers and the insured of the employee insurance company, and that in a way where 5 members are elected from the candidates proposed by the employer representative organisations and 5 members are elected from the candidates proposed by the union organisations and organisations of patients registered at the Ministry of the Interior. The scope of those entitled to make proposals, method of the election and the election code are defined by the Ministry of Health’s Decree. Regularity of the election is monitored by the Ministry of Health.

5) The employee insurance Board of Supervisors is made up of

a) 3 members, who, based on the proposal of the Ministry of Finance, the Ministry of Labour and Social Affairs and the Ministry of Health, are appointed and dismissed by the government;

b) 6 members elected by employers and insured, and that in a way whereby 3 members are elected from the candidates proposed by the employer representative organisations and 3 members are elected from the candidates proposed by the union organisations and organisations of patients registered at the Ministry of the, the Ministry of Labour and Social Affairs and the Ministry of Health, are appointed and dismissed by the government.

Health care in case of accidents at work and occupational diseases is covered by public health insurance. Cash benefits and compensation to which a protected person is entitled as a result of contingency is covered by other social security schemes.


Financing public health insurance system

The level of insurance premiums depends on the income received, i.e. one-third is paid by the employee and two thirds by the employer. The state pays the premium for about 60 % of insured persons, especially dependent children, students, pensioners, persons on maternity or parental leave, etc.

Additional information

Health insurance funds are financed through contributions from employees and employers, amounting to 13.5 percent of the employees’ gross income, up to a ceiling of 48 times the monthly average wage per year. The employee pays 4.5 percent and the employer 9 percent. Self-employed persons pay 13.5 percent of their assessment income. The state covers health insurance for the unemployed, pensioners, students, women on maternity leave, women taking care of one child of less than 7 years or more children aged less than 15 years old, prisoners, soldiers, and people receiving other social security benefits. In total, the state pays for ca 60 percent of the population. People without a taxable income (for example, housewives) pay their contributions themselves, based on the national minimum wage.

The self-governing bodies of all insurance companies include representatives of the insured persons, the insured persons` employers, and the state.[3] The management of the General Health Insurance Company is partially appointed by the government, and partially elected by the Czech Parliament.[4] Representation of employees and employers in the sector, branch, enterprise and other health insurance companies is regulated by Act No. 280/1992 Coll. Section 10 of this Act and the Czech Social Security Administration, on reports of the government, and on determines that the managing board of an insurance company should consist of five members named by the government, five members elected by employers, and five by the insured employees. Moreover, the Board of Supervisors of the insurance companies should consist of three representatives of the Ministry of Finance, the Ministry of Labour and Social Affairs, and the Ministry of Health, appointed by the government, and six representatives of the social partners, equally divided about employers and insured persons. With these rules, the Czech Republic complies with the requirement of the European Code of Social Security and ILO Convention 130 that where the administration of a social security scheme is not entrusted to a public institution, representatives of the persons protected shall participate in the management of the insurance company.

Part III. Sickness Benefit

The Czech Republic has accepted the obligations resulting from Part III of C130 and Part III of the ECSS.

Category

Information available

Information missing / questions raised by the CEACR

III-1. Regulatory framework

Art.13 ECSS, Art.18 C130

III-2. Contingencies covered

Art.14 ECSS, Art.7(b) C130

III-3. Persons Protected

Art.15 ECSS, Art.19 C130*

III-4. Level and Calculation of Benefit

Art.16 ECSS, Art.21 C130*

III-5. Qualifying period

Art.17 ECSS, Art.25 C130

III-6. Minimum duration of Benefit

Art.18 ECSS, Art.26 C130

III-7. Funeral Benefit

Art.27 ECSS

III-8. Suspension of Benefit

Art.68 ECSS, Art.28 C130

III-9. Right of complaint and appeal

Art.69 ECSS, Art.29 C130

III-10. Financing and Administration

Art.70*,72 ECSS

Art.30,31 C130

* Please update statistical data, in accordance with the Report form for C102/ECSS/C130.

List of applicable legislation

·           Act No. 187/2006 Coll., Sickness Insurance Act, as amended

·           Act No. 262/2006 Coll., the Labour Code, as amended

·           Act No. 500/2004 Coll., the Rules of Administrative Procedure, as amended

·         Act No. 117/1995 Coll., on State Social Support, was updated in the given period by Acts No. 364/2011 Coll., 366/2011 Coll., 408/2011 Coll., 375/2011 Coll., 401/2012 Coll. (part), 331/2012 Coll., 428/2011 Coll., 399/2012 Coll., 401/2012 Coll., 482/2012 Coll., 48/2013 Coll., 267/2013 Coll., 306/2013 Coll., 458/2011 Coll. (part), 303/2013 Coll., 344/2013 Coll., 440/2013 Coll., 64/2014 Coll., 101/2014 Coll., 458/2011 Coll., 250/2014 Coll., 252/2014 Coll., 253/2014 Coll., 327/2014 Coll., 332/2014 Coll., 377/2015 Coll., 395/2015 Coll.

https://portal.gov.cz/app/zakony/zakonPar.jsp?idBiblio=43008&nr=117~2F1995&rpp=15#local-content

·         Act No. 187/2006 Coll., Sickness Insurance Act, took effect on 1 January 2007, and was amended in the given period by Acts No. 263/2011 Coll., 341/2011 Coll., 364/2011 Coll., 365/2011 Coll., 470/2011 Coll., 1/2012 Coll., 375/2011 Coll., 410/2011 Coll., 169/2012 Coll., 167/2012 Coll., 470/2011 Coll. (part), 396/2012 Coll., 458/2011 Coll., 250/2014 Coll., 267/2014 Coll., 14/2015 Coll., 332/2014 Coll., 204/2015 Coll., 317/2015 Coll., 131/2015 Coll., 47/2016 Coll., 190/2016 Coll., 298/2016 Coll., 24/2017 Coll., 99/2017 Coll., 148/2017 Coll., 183/2017 Coll., 195/2017 Coll., 259/2017 Coll., 310/2017 Coll., 92/2018 Coll., 335/2018 Coll., 111/2019 Coll., 164/2019 Coll., 277/2019 Coll., 315/2019 Coll.

https://portal.gov.cz/app/zakony/zakonPar.jsp?idBiblio=62555&nr=187~2F2006&rpp=15#local-content 

·         Act No. 189/2006 Coll., amending some acts in connection with adopting the Sickness Insurance Act

http://portal.gov.cz/wps/WPS_PA_2001/jsp/download.jsp?s=1&l=189%2F2006

·         Act No. 582/1991 Coll., on the Organization and Implementation of Social Security by Acts No. 220/2011 Coll., 263/2011 Coll., 220/2011 Coll. (part), 329/2011 Coll., 341/2011 Coll., 348/2011 Coll., 364/2011 Coll., 365/2011 Coll., 366/2011 Coll., 367/2011 Coll., 470/2011 Coll., 375/2011 Coll., 167/2012 Coll., 428/2011 Coll., 470/2011 Coll. (part), 399/2012 Coll., 401/2012 Coll., 403/2012 Coll., 274/2013 Coll., 303/2013 Coll., 313/2013 Coll., 344/2013 Coll., 64/2014 Coll., 136/2014 Coll., 458/2011 Coll., 250/2014 Coll., 251/2014 Coll., 267/2014 Coll., 332/2014 Coll., 317/2015 Coll., 131/2015 Coll., 377/2015 Coll., 190/2016 Coll., 213/2016 Coll., 298/2016 Coll., 24/2017 Coll.., 99/2017 Coll., 148/2017 Coll., 183/2017 Coll., 195/2017 Coll., 203/2017 Coll., 259/2017 Coll., 310/2017 Coll., 92/2018 Coll., 335/2018 Coll., 111/2019 Coll., 164/2019 Coll., 228/2019 Coll., 315/2019 Coll.

https://portal.gov.cz/app/zakony/zakonPar.jsp?idBiblio=39631&nr=582~2F1991&rpp=15%20-%20local-content

·         Act No. 589/1992 Coll., on Social Security Premiums and on Contributions to the State Employment Policy, was amended by Acts No. 263/2011 Coll., 341/2011 Coll., 364/2011 Coll., 365/2011 Coll., 470/2011 Coll., 428/2011 Coll., 399/2012 Coll., 401/2012 Coll., 503/2012 Coll., 11/2013 Coll., 344/2013 Coll., 458/2011 Coll., 401/2012 Coll., 250/2014 Coll., 267/2014 Coll., 332/2014 Coll., 131/2015 Coll., 377/2015 Coll., 190/2016 Coll., 24/2017 Coll. , 99/2017 Coll., 183/2017 Coll., 259/2017 Coll., 310/2017 Coll., 92/2018 Coll., 32/2019 Coll., 315/2019 Coll.

·        

https://portal.gov.cz/app/zakony/zakonPar.jsp?idBiblio=40377&nr=589~2F1992&rpp=15#local-content :

·           Act No. 54/1956 Coll., on Sickness Insurance of Employees was abrogated by Act No. 187/2006 Coll.

·           Act No. 32/1957 Coll., on Health Care in Armed Forces was abrogated by Act No. 187/2006 Coll.

·           Act No. 88/1968 Coll., on Extending Maternal Leave, on Benefits and Bonuses for Children from Sickness Insurance was abrogated by Act No. 187/2008 Coll.

·           Decree N. 165/1979 Coll., on Sickness Insurance of Some Workers and on Providing Sickness Benefits to People in Special Cases, was abrogated by Act No. 187/2006 Coll.

III – 1. Regulatory framework

Article 13. C102 and ECSS

Each Member (Contracting Party) for which this Part of this Convention (Code) is in force shall secure to the persons protected the provision of sickness benefit in accordance with the following Articles of this Part.

Article 18. C130

Each Member shall secure to the persons protected, subject to prescribed conditions, the provision of sickness benefit in respect of the contingency referred to in subparagraph (b) of Article 7.

General requirements for sickness insurance benefits entitlement are regulated by Sections 15–17 of the Sickness Insurance Act. Entitlement to sickness benefit is established regardless of the financial circumstances of the insured person.

III - 2. Contingency covered

Article 14. C102 and ECSS

The contingency covered shall include incapacity for work resulting from a morbid condition and involving suspension of earnings, as defined by national laws or regulations.

Article 1 (j). C130

The term “sickness” means any morbid condition, whatever its cause.

Article 7 (b). C130

The contingencies covered shall include

(b) incapacity for work resulting from sickness and involving suspension of earnings, as defined by national legislation.

Sickness benefit entitlement applies to an employee acknowledged in accordance with the Act No. 187/2006 Coll., Sickness Insurance Act (as amended) to be temporarily unable to work if his/her temporary inability to work lasts more than 14 calendar days. The employee is entitled to salary or wage compensation according to Labour Code in the course of the first 14 calendar days of temporary inability to work paid to the employee by the employer.

Temporary incapacity/quarantine of the employee is an obstacle to work for the employee which does not allow the employee from performance of work. The employer is obliged to excuse the employee for the duration of an obstacle to work and the employee is obliged to prove the existence of an obstacle.

III - 3. Persons protected

Article 15. C102 and ECSS

The persons protected shall comprise:

(a) prescribed classes of employees, constituting not less than 50 per cent of all employees; or

(b) prescribed classes of the economically active population, constituting not less than 20 per cent of all residents; or

(c) all residents whose means during the contingency do not exceed limits prescribed in such a manner as to comply with the requirements of Article 67.

Article 19. C130

The persons protected in respect of the contingency specified in subparagraph (b) of Article 7 shall comprise:

(a) all employees, including apprentices; or

 (b) prescribed classes of the economically active population, constituting not less than 75 per cent of the whole economically active population; or

(c) all residents whose means during the contingency do not exceed limits prescribed in such a manner as to comply with the requirements of Article 24.

The Czech Republic refers to the provision of letter a) of the Article 15 of the ECSS.

The scope of insured persons is defined by Section 5 of the Act No 187/2009 Coll., the Sickness Insurance Act. This includes employees in employment, employees active upon the basis of agreement to work outside the scope of employment, judges, community care service volunteers, associates and managing directors of a limited liability company, the directors of charitable companies, members of collective bodies of legal entities, authorized representatives, liquidators and others. Sickness insurance for self-employed persons is voluntary. This includes also apprentices in accordance with the provisions of Section 5 Subsection 22 of the Sickness Insurance Act who receive the income from which insurance has been paid.

Number of self-employed persons covered:  91,43194,792 persons in 20182019.

Since 1 January 2012, the group of sickness insured employees has been enlarged. It now includes among others workers active upon the basis of agreement to work outside the scope of employment, who participate in sickness insurance only if they work in the Czech Republic and the amount of their income exceeds CZK 10,001 in a calendar month during the existence of such an agreement. Employee participates in sickness insurance also if he/she performed with one employer more than one agreement to complete a job in a calendar month and if the total revenue from these agreements reached during the calendar month an amount higher than CZK 10,000.

Since 1 January 2014, the group of insured employees has been enlarged again; everyone who pays income taxes from employment is usually covered by insurance.

Participation in sickness and pension insurance emerges automatically if the arranged amount of the assessable income from this job for a calendar month is at least CZK 3,000.

For employment small in scale, i.e. employment in which assessable income in an amount lower than CZK 3,000 per month was agreed, or income was not agreed at all, the employee participates in sickness and pension insurance only in those calendar months (for the duration of employment) in which assessable income of at least CZK 3,000 was cleared to him/her.

An employee active on the basis of an agreement to complete a job (ACJ) participates in sickness and pension insurance only in those calendar months for the duration of this agreement, in which his/her assessable income of more than CZK 10,000 was cleared; participation in insurance is monitored on monthly basis. This means that e.g. the income from the ACJ in the amount of CZK 9,000 is subject to taxation but not insurance, and participation in the insurance is not requested.

The character of work based on an agreement to complete a job (ACJ) is only casual (a part-time job) frequently performed contemporary with the full-time job as the additional source of income. Due to this fact, there are no statistics available concerning its incidence, but it can be presumed that the number of persons not covered by the sickness insurance is relatively small as most workers with ACJ are already insured due to their full-time employment.  Similarly, it works in the case of small-scale employment.

Statistical information:

Source: The Czech Social Security Administration: the Annual Accounting Report[5]

                                                                                                                                                                  

A. Number of employees covered:              4,597,7584,586,518 persons

    Number of self-employed persons covered:    91,43194,792 persons

B. Total number of employees:                    4,597,7584,586,518 persons

C. 100%

It is compulsory in the Czech Republic to provide sickness insurance to all employees.

Definition of “employees”

An employee is an individual (natural person) legally bound himself/herself to perform dependant work as an employee in labour-law relations (Section 6 of the Act No 262/2006 Coll., the Labour Code).

Sickness Insurance Act in Section 5 defines an employee as a person who have/could have an income from a dependent activity based on employment which is/would be a subject to income tax and has not been exempted from such a taxation. The definition includes employees in employment, employees active upon the basis of agreement to work outside the scope of employment, judges, community care service volunteers, associates and managing directors of a limited liability company, the directors of charitable companies, members of collective bodies of legal entities, authorized representatives, liquidators and others, as mentioned in Report 2016-ECSS.

III - 4. Level and Calculation of Benefit

Article 16. C102 and ECSS

1. Where classes of employees or classes of the economically active population are protected, the benefit shall be a periodical payment calculated in such a manner as to comply either with the requirements of Article 65 or with the requirements of Article 66.

2. Where all residents whose means during the contingency do not exceed prescribed limits are protected, the benefit shall be a periodical payment calculated in such a manner as to comply with the requirements of Article 67; [provided that a prescribed benefit shall be guaranteed, without means test, to the prescribed classes of persons determined in accordance with Article 15. a or b - ECSS].

Article 21. C130

The sickness benefit referred to in Article 18 shall be a periodical payment and shall:

(a) where employees or classes of the economically active population are protected, be calculated in such a manner as to comply either with the requirements of Article 22 or with the requirements of Article 23;

(b) where all residents whose means during the contingency do not exceed prescribed limits are protected, be calculated in such a manner as to comply with the requirements of Article 24.

Chapter I

A.            Rules for sickness benefit calculation:

a) Wage or salary compensation paid by employers to employees

1.            The compensation is paid for workdays, only during the first 14 days of the temporary incapacity to work.

1.            The specified period for setting the average earnings is the previous completed quarter.

1.            The amount is set on the basis of the average hourly earnings which are reduced in a similar way as the basis determining the amount of the sickness benefits.

1.            The percentage rate is the same as for sickness benefits (60% of reduced average earnings).

1.            Since 1st July 2019 Tthe compensation is not paid for  from the first three working days of the temporary incapacity to work (no waiting period)., but it is possible to conclude an agreement between the employee and an employer or include such an arrangement in a collective agreement or to stipulate by an internal regulation that wage/salary compensation will be provided for the first three days of temporary incapacity to work as well.

1.            The daily amount of wage/salary compensation since the fourth first working day of temporary incapacity to work corresponds to the amount of 60% of the daily assessment base.

Chapter I

A.     Rules for sickness benefit calculation:

a)    Wage or salary compensation paid by employers to employees

a.                       The compensation is paid for workdays (i. e. days/shifts missed by an employee due to illness, as a loss of earnings´ compensation), during the first 14 days of the temporary incapacity to work. The character of the payment is based on providing the employee with the wage compensation paid by the employer during specified period of time (two weeks) at the beginning of the temporary incapacity to work (with the exception of three-day waiting period), i.e. it is not a form of a sickness benefit, as a covered contingency, in the sense of the Code. After the first 14 days of that compensation paid by an employer, the sickness benefit is paid to the employee by the Social Security Administration.

The contingency envisaged by the Convention/ECSS caused by loss of earnings thus arises with the delay of 14 days. Simultaneously, the rate of sickness insurance contribution paid by the employer was lowered by 1 p. p., as a financial compensation for this obligation.  The contribution paid by the employer was lowered by additional0.2 p.p. from 1st July2019 simultaneously with the abolishment of the waiting period.7 Sickness insurance contributions for employees were abolished by Act No 2/2009, amending the Act No 586/1992 Coll., Income Taxes Act. For this reason, the first 14 days of the temporary incapacity to work is not considered as a part of supporting period which was therefore prolonged form 365 days to 380 days in order to formally conform to the requirement of 52 weeks. 

The aim of this legislative change is inter alia to increase the effectiveness of societal supervision over the abuse of the sickness insurance, primarily in short-term sick leave. [6]

b.                       The specified period for setting the average earnings is the previous completed quarter.

c.                        The amount is set on the basis of the average hourly earnings which are reduced in a similar way as the basis determining the amount of the sickness benefits.

d.                       The percentage rate is (60% of reduced average earnings).

e.                       Since 1st July 2019 Tthe compensation is not paid for from the first three working daysday  of the temporary incapacity to work (no waiting period)[7]., but it is possible to conclude an agreement between the employee and an employer or include such an arrangement in a collective agreement or to stipulate by an internal regulation that wage/salary compensation will be provided for the first three days of temporary incapacity to work as well.

f.                         The daily amount of wage/salary compensation since the fourth first working day    of temporary incapacity to work corresponds to 60% of the daily assessment     base.

b) Sickness benefits

1.      The sickness benefit is paid out for calendar days, since the 15th calendar day of temporary incapacity to work, in case that the temporary incapacity to work lasts more than 14 days. The employee is thus covered by the sickness benefit every single (calendar) day of the temporary incapacity to work, no matter how many working days/shifts he/she did not work out due to the contingency.

2.      The decisive period for determination of average earnings is usually[8] 12 calendar months preceding the calendar month in which the temporary incapacity to work occurred.

3.      The daily assessment base is the assessable income divided by the number of calendar days of the specified period (some days are not included in order to avoid unjustified dilution of the daily assessment base, for example the days when sickness benefits were provided).

4.      The qualifying income consists of all income subject to social security contributions and contributions to the state employment policy calculated for an employee in the specified period.

5.      Reduction of the daily assessment base: 90 % of the amount up to the first reduction limit is counted, 60 % of the amount between the first and second reduction limit is counted, 30 % between the second and third reduction limit is counted and the amount above the third reduction limit is not taken into account.

6.      In 20192020, the first reduction limit is CZK 1,0901,162, the second reduction limit is CZK 1,6351,742 and the third reduction limit is CZK 3,2703,484.

7.      The daily benefit is calculated from the 15th to 30th calendar day at the fixed rate of 60 % of the daily assessment base; from the 31st to 60th calendar day at the rate of 66 % of the daily assessment base and from 61st calendar day the rate amounts to 72% of the daily assessment base[9].

8.      Sickness benefit is a multiple of the daily benefit and the number of calendar days of the duration of the temporary incapacity to work.

B.

      To evaluate the required level of sickness benefits, it is proceeded in accordance with Article 65, Section 6 Subsection a).

C. In 20182019, the average gross wage of a skilled worker was CZK 30,24932,787 (based on Job Specification CZ-ISCO 72231 – a metal turner – a machine tool setter and an operator).

Chapter II

Calculation of sickness benefits:

Data of 1 January 20192020

D. – G. The calculation of the ratio for the evaluation of the sickness benefits level:

§ A gross wage of a skilled worker is used for calculation (based on Job Specification CZ-ISCO 72231 – a metal turner – a machine tool setter and an operator) in 20198, i.e. CZK 30,24932,787

§ Gross wage from employment: CZK 30,24932,787, of which the net salary after the tax deduction amounts (for a taxpayer with two children) to CZK 25,646.27,404

§ The daily assessment base for the calculation of sickness benefits (DAB): the ratio between the annual wage and the number of days in the specified period:  32,78730,249 x 12/365 = CZK 994,49.1,077.93

§ The daily assessment baseis reduced as follows:

    DAB: 1,077.93994,49 x 90% = CZK 896971.

§ Daily amount of sickness benefit:

It is 60% of the DAB since the 15th to 30th day of temporary incapacity to work,

    60% out of 896 971 = CZK 538583.

    From the 31th to 60th day of temporary incapacity to work it is 66% of the DAB:

    66% out of 896 971 = CZK 592641

§ The monthly amount of sickness benefit from 15th to 44th day of temporary incapacity to work: 16 x 538 583 +14 x 592 641 = CZK 16,89618,302.

§ Child benefits for two childrenamounting to CZK 1,820 (2 x CZK 910).

§ Net income and child benefits = CZK 27,46629,224.

§ Sickness benefit and child benefits for two children = CZK 18,71620,122.

§ The ratio between the incomes after the insured claim (sickness benefit + child benefits) and incomes before the insured claim (net wage + child benefits): 20,122/29,224 = 68.9%18,716 / 27,466 = 68.1%.

Update 2018

With effect from 1 January 2018, the level of the sickness benefit was increased as follows:

- from 31st calendar day of the temporary incapacity to work, the ratio was increased from 60% to 66% of the daily assessment base (DAB);

- from the 61st calendar day of the temporary incapacity to work, the ratio was increased from 60% to 72% of the DAB.

Up to now, the daily benefit was calculated as a 60% of the DAB and multiplied by number 30 for the period of 30 days of the temporary incapacity to work. From 1 January 2018, the benefit has been calculated as follows:

- Daily level of the benefit for the period from the 15th till 30th day of the temporary incapacity to work will amount to 60% of the DAB and be multiplied by 16;

- Daily level of the benefit for the period from the 31st till 44th day of the temporary incapacity to work will amount to 66% of the DAB and be multiplied by 14.

Monthly salary in CZK

Monthly benefits for 2 children in CZK per month

Monthly sickness benefits in CZK

Ratio sickness benefits / wage in % *)

gross

Net

Gross

Net

30,24932, 787

25,64627,404

1,820

16,89618,302

58,458.1

68,168.9

*) Including increased child benefits as of January 1, 20192020.

    Source: Ministry of Labour and Social Affairs.

The European Code of Social Security requires the ratio of sickness benefits to the preceding income of an insured individual in the minimum amount of 45%. The Czech Republic fulfils the required level of the amount of sickness benefit in respect of both gross and net wage.

III - 5. Qualifying period

Article 17. C102 and ECSS

The benefit specified in Article 16 shall, in a contingency covered, be secured at least to a person protected who has completed such qualifying period as may be considered necessary to preclude abuse.

Article 25. C130

Where the legislation of a Member makes the right to the sickness benefit referred to in Article 18 conditional upon the fulfilment of a qualifying period by the person protected, the conditions governing the qualifying period shall be such as not to deprive of the right to benefit persons who normally belong to the categories of persons protected.

The Czech legal regulations do not designate the fulfilment of a qualifying period as a precondition for the establishment of entitlement to sickness benefit. The insured person’s entitlement to the sickness benefit arises as of the day of his/her entry into employment which constitutes the basis for participation in the sickness insurance scheme.

III - 6. Minimum duration of Benefit

Article 18. C102 and ECSS

The benefit specified in Article 16 shall be granted throughout the contingency, except that the benefit may be limited to 26 weeks in each case of sickness, [in which event it – C102] need not be paid for the first three days of suspension of earnings.

Article 26. C130

1. The sickness benefit referred to in Article 18 shall be granted throughout the contingency: Provided that the grant of benefit may be limited to not less than 52 weeks in each case of incapacity, as prescribed.

2. Where a declaration made in virtue of Article 2 is in force, the grant of the sickness benefit referred to in Article 18 may be limited to not less than 26 weeks in each case of incapacity, as prescribed.

3. Where the legislation of a Member provides that sickness benefit is not payable for an initial period of suspension of earnings, such period shall not exceed three days.

Temporary incapacity to work of an employee in the first 14 days

In accordance with Section 192 Subsection 1 of the Labour Code, an employee who is temporarily incapable to work has the right to receive compensation of wage / salary paid by the employer for the first 14 days of temporary incapacity / quarantine paid by an employer. The compensation of wage/salary for temporary incapacity / quarantine for the first three days of temporary incapacity to work is not provided (i.e. waiting period).

An employer pays compensation of wage/salary to an employee for the first 14 calendar days of temporary incapacity to work for working days, which are his/her working days (scheduled shifts) and for national holidays, for which the employee is entitled to salary compensation under Section 115 par. 3 of the Labour Code or for which his/her salary is not reduced (Section 135 par. 1 of the Labour Code), if on these particular days he/she complies with the terms of right for the payment of sickness benefits under the Sickness Insurance Act and if the employment lasts but no longer than until the date of expiration of the supportive period intended for the payment of sickness benefits under Section 26 et seq. of the Sickness Insurance Act.

Temporary incapacity to work of an employee since the 15th day

Sickness benefits are provided according to the Sickness Insurance Act since the 15th calendar day of duration of the temporary incapacity to work up to a maximum period of 380 calendar days since the beginning of temporary incapacity to work. Sickness benefits can be provided even after the expiry of the support period, if it can be expected the insured individual will shortly return to capacity to work upon the basis of a statement from the sickness insurance authority. It is, however, only possible to provide the sickness benefit in this way for a period of a further 350 calendar days. Sickness benefits are paid by the Czech Social Security Administration or by service authorities.

In case of a new temporary incapacity to work, the previous periods of temporary incapacity are included in the period of 380 calendar days since the beginning of temporary incapacity, provided those days fall into a period of 380 calendar days prior to the occurrence of a new case of temporary incapacity to work. Previous periods of temporary incapacity to work are not included if the insured activity lasted at least 190 calendar days since the end of the last case of temporary incapacity to work.

Since 1 January 2014, the sickness benefit is provided from the 15th calendar day of the temporary incapacity for work, the maximum period of providing the sickness benefit remains unchanged.

The sickness benefit may be provided based on Section 27 of the cited Sickness Insurance Act also after the contribution period of 380 calendar days has expired, based on a request of the insured. The condition is that, according to a statement of a physician of the sickness insurance authority, it can be expected that the insured will regain capacity for work within a short period, i.e. no later than 350 calendar days after the general contributory period (380 calendar days) has expired. This way, the contribution period of the sickness benefit payments may be extended by further 350 calendar days beyond the general contribution period, i.e. in total to 730 calendar days.

The person who has exhausted the contribution period for sickness benefit payment and has not regained capacity for work may solve his/her situation by applying for an invalidity benefit. The entitlement to that arises for persons who have become disabled according to the medical opinion of a medical officer of the District Social Security Administration for disability of the level-one to level-three and at the same time gained the necessary insurance period prescribed by the Pension Insurance Act. Obtaining the necessary insurance period is not required in cases where the invalidity occurred due to occupational accident or disease. Persons who have lost capacity to work may also apply for state social support benefits, invalidity benefits and, in the case of low income, for material need assistance benefits.

III - 7. Funeral Benefit

Article 27. C130

1. In the case of the death of a person who was in receipt of, or qualified for, the sickness benefit referred to in Article 18, a funeral benefit shall, under prescribed conditions, be paid to his survivors, to any other dependants or to the person who has borne the expense of the funeral.

2. A member may derogate from the provision of paragraph 1 of this Article where: (a) it has accepted the obligations of Part IV of the Invalidity, Old-Age and Survivors' Benefits Convention, 1967;

(b) it provides in its legislation for cash sickness benefit at a rate of not less than 80 per cent of the earnings of the persons protected; and,

(c) the majority of persons protected are covered by voluntary insurance which is supervised by the public authorities and which provides a funeral grant.

Funeral grant is a lump-sum benefit granted to cover funeral expenses
granted to a person who carried out the funeral of a dependent child or of a parent of a dependent child. The condition for entitlement is the permanent residence of a parent/child in the territory of the Czech Republic on the day of death. It is not a mean-tested benefit. The amount of the funeral grant is fixed at the amount of CZK 5,000.

The funeral grant entitlement is not dependent on whether the child or the parent or the person bearing the expense for the funeral is or is not a participant in the pension or sickness insurance.

Details are stipulated in the Act No 117/1995 Coll., State Social Support Act (Sec. 47 and 48)
Payment is provided by the Regional Office of the Labor Office according to the place of residence.

The Act No 262/2006 Coll., Labour Code, stipulates, in Sec.271g that where an employee dies as a consequence of an industrial injury or an occupational disease, the employer shall pay adequate costs connected with the employee's funeral, cemetery fee, travel expenses, a gravestone and its finishing at a minimum cost of CZK 20,000 and one third of common expenditures for mourning clothes.

III - 8. Suspension of Benefit

See under Part XIII-1

Article 28. C130

1. A benefit to which a person protected would otherwise be entitled in compliance with this Convention may be suspended to such extent as may be prescribed:

(a) as long as the person concerned is absent from the territory of the Member;

(b) as long as the person concerned is being indemnified for the contingency by a third party, to the extent of the indemnity;

(c) where the person concerned has made a fraudulent claim;

(d) where the contingency has been caused by a criminal offence committed by the person concerned;

(e) where the contingency has been caused by the serious and wilful misconduct of the person concerned;

(f) where the person concerned, without good cause, neglects to make use of the medical care or the rehabilitation services placed at his disposal, or fails to comply with rules prescribed for verifying the occurrence or continuance of the contingency or for the conduct of beneficiaries

(g) in the case of the sickness benefit referred to in Article 18, as long as the person concerned is maintained at public expense or at the expense of a social security institution or service; and

(h) in the case of the sickness benefit referred to in Article 18, as long as the person concerned is in receipt of another social security cash benefit, other than a family benefit, subject to the part of the benefit which is suspended not exceeding the other benefit.

2. In the cases and within the limits prescribed, part of the benefit otherwise due shall be paid to the dependants of the person concerned.

Temporary incapacity to work of an employee in the first 14 days

If the insured individual who is temporarily incapable to work violates the fixed mode during the first 14 days of temporary inability (for example he/she does not fulfil the obligation to stay in the place of residence or works during the time of sickness for another employer), then the reason of obstacle for which the employer is obliged to excuse the employee ceases to exist and the employee should return back to work. If he/she does not do so, such behaviour is considered as a violation of obligations the employer may, according to the provisions of Section 52. h) of the Labour Code, impose a sanction or terminate employment as a result of violating of other employee´s obligation specified in Section 301 of the Labour Code in a particularly gross manner. The provision of Section 301a governs the "Other duties of the employees” and states that employees are obliged in the first 14 calendar days of temporary inability to work to fulfil the prescribed regime at the time of temporary incapacity to work regarding the obligation to remain in the place of residence in a period of temporary incapacity and to observe the time and length of permitted leaves, as stipulated by the Sickness Insurance Act.

Temporary incapacity to work of an employee since 15th day

·         The insured individual is not entitled to the payment of sickness benefits for the period during which:

o   He/she performs work or self-employed activity during the time when drawing sickness benefit from another insured activity;

o   He/she receives chargeable income under the special regulations of employment, of which sickness benefits belong.

·         An insured individual or any other recipient of a sickness benefit who has failed to fulfil any of the imposed obligations or has received the benefit or part thereof even though he/she must have been aware from circumstances that it had been paid out wrongly or at a higher amount than the said individual was entitled to, is obliged to repay the benefit payer any overpayment of the benefit. If another physical or legal entity has caused the benefit to be paid out wrongfully or at an amount higher than the individual was entitled to, said entity will be obliged to repay the benefit payer any overpayment of the benefit.

·         If the insured individual has brought about his/her temporary incapacity to work:

o   As a result of his/her participation in a fight;

 

The said individual will still be entitled to sickness benefits, but at half the amount. An insured individual who has deliberately brought about his/her temporary incapacity to work has no entitlement to sickness benefits.

·         If an incapacitated insured individual breaches the prescribed medical regime during temporary incapacity to work, his/her sickness benefit may be reduced or suspended for a maximum period of 100 calendar days from the day of the breach in the medical treatment, but no longer than until the end of the period of temporary incapacity to work during which the breach in this treatment occurred.

·         The Sickness Insurance Act enables the payment of sickness benefits abroad on the basis of the request of the insured individual. It is only paid to the insured individual´s bank account and in return for the payment of the associated costs.

·         If an insured person who is temporarily unable to work applies for a disability pension in accordance with Act No. 155/1995 Coll., Pension Insurance Act, as amended (hereinafter the "Pension Insurance Act"), and is acknowledged as disabled by the social security body, the temporary incapacity to work ends at the latest on the thirtieth day since the day following the day on which the insured individual was acknowledged as disabled. The disability pension will be granted since the day following the date of termination of the temporary incapacity to work.

·         If an old age benefit is awarded according to the Pension Insurance Act in the period when the insured employment or insured individual´s independent gainful activities have not ended, the entitlement to sickness benefit will not end. However, the length of the period of provision of sickness benefit will be limited in case of this temporary incapacity to work alongside the payment of an old age pension. Sickness benefit is paid to a recipient of an old age benefit for a maximum period of 70 calendar days, but not after than the day of the termination of the insured activity and no longer than would be paid out up to the ceasing of the “general length” of the period of support.

In the course of any temporary incapacity to work, an insured individual loses his/her entitlement to sickness benefit in the situation when the insured individual becomes entitled to an old age benefit in the course of said period of temporary incapacity to work and said individual´s insured employment or insured independent gainful activities cease before the day on which the individual became entitled to the payment of the old age pension.

·         The temporary incapacity to work of an insured individual who is entitled to maternity benefit shall be terminated and payment of sickness benefits shall be terminated at the beginning of the sixth week before the expected date of birth, if she was not entitled to receive maternity benefits earlier.

Suspension of benefits

a) Job termination– in general, the employee can be dismissed only when he/she breaches his/her obligation in especially gross manner and the employer cannot be justly expected to employ such employee any further (includes excessive unauthorised absences, repeated positive testing for presence of alcohol in blood or intoxication at work, simulate sickness etc.).

The reason of notice of termination must be factually specified, so that it cannot be confused with another reason. The employment will come to end upon the expiry of the notice period. The notice period shall be at least two months and starts to run on the first day of the calendar month following delivery of the notice and come to end upon the expiry of the last day of the relevant calendar month.

Dismissed person can be registered as a job seeker at the Labour Office regardless the reason of the job termination (Section 25 of the Act No 435/2004 Coll, Employment Act, as amended).

The only obstacles to inclusion in the register have been described in Sec. 25 Subsec. 8, and cover situations when insured person terminated the employment mediated by Labour Office without any serious reason according to Section 52 (g)[10] of the Labour Code or was dismissed from employment mediated by Labour Office in accordance with Section or 55(1b) of the Labour Code.[11] Thus, there is no connection with temporary incapacity to work, wage compensation, sickness benefits or double punishment, but with the other breaching of labour law obligations of an employee in his/her labour law relationship mediated by Labour Office. This measurement prevents job seekers misuse unemployment services and benefits.

b) Sickness benefit - employer pays a compensatory wage to employee only during first 14 days of the temporary incapacity to work. Sickness benefit from 15th day of the temporary incapacity to work is provided by Czech Social Security Administration without regard to employment, unemployment or reason of job termination.

Thus the breach of the medical regime during the first 14 days cannot be considered as a reason for the suspension of sickness benefit by the Social Security Administration, because during the mentioned period of time (the first 14 days), an employee receives a financial compensation from his/her employer.

c) Unemployment benefit – a person during temporary incapacity to work, drawing sickness benefit, cannot be registered as a job seeker and draw unemployment benefit at the same time.

As soon as he/she is able to work, he/she can be registered at the Labour Office and services for the unemployed are fully provided.

d) Material need - the benefit system covers also persons who are not in labour-law relationship or registered/not registered at the Labour Office as a job seeker.

6. Part XII (Common provisions), Article 68(g). Suspension of sickness and unemployment benefits.

The Committee asks the Government to confirm that, notwithstanding the above explanation, it is indeed the set of sanctions it considers appropriate to impose under Article 68(g) of the Code in cases where the person concerned neglects to make use of the medical or rehabilitation services place at his/her disposal or fails to comply with residence or leave rules during temporary incapacity to work.

Concerning the suspension of sickness and unemployment benefits, the Czech Republic invites the possibility to explain inaccuracies in the Conclusions.

a) Job termination – in general, the employee can be dismissed only when he/she breaches his/her obligation in especially gross manner and the employer cannot be justly expected to employ such employee any further (includes excessive unauthorised absences, repeated positive testing for presence of alcohol in blood or intoxication at work, simulate sickness etc.).

The reason of notice of termination must be factually specified, so that it cannot be confused with another reason. The employment will come to end upon the expiry of the notice period. The notice period shall be at least two months and starts to run on the first day of the calendar month following delivery of the notice and come to end upon the expiry of the last day of the relevant calendar month.

Dismissed person can be registered as a job seeker at the Labour Office regardless the reason of the job termination (Section 25 of the Act No 435/2004 Coll., Employment Act, as amended).

The only obstacles to inclusion in the register have been described in sec. 25 Subsec. 8, and cover situations when insured person terminated the employment mediated by Labour Office without any serious reason according to section 52 (g)[12] or was dismissed from employment mediated by Labour Office in accordance with section or 55(1b)[13]. Thus, there is no connection with temporary incapacity to work, wage compensation, sickness benefits or double punishment, but with the other breaching of labour law obligations of an employee in his/her labour law relationship mediated by Labour Office. This measurement prevents job seekers misuse unemployment services and benefits.

b) Sickness benefit - employer pays a compensatory wage to employee only during first 14 days of the temporary incapacity to work. Sickness benefit from the 15th day of the temporary incapacity to work is provided by Czech Social Security Administration without regard to employment, unemployment or reason of job termination.

c) Unemployment benefit – a person during temporary incapacity to work, drawing sickness benefit, cannot be registered as a job seeker and draw unemployment benefit at the same time.

As soon as he/she is able to work, can be registered at the Labour Office and services for the unemployed are fully provided.

d) Material need - the benefit system covers also people who are not in labour-law relationship or registered/not registered at the Labour Office as a job seeker.

Lack of income to secure livelihoods and justified housing costs and the inability to increase one´s own income because of age, health or other serious reasons are the criteria for assessing poverty. By meeting these conditions, the assessed person becomes a client of the system of assistance in material need. Depending on the situation, such a person may draw benefits provided for in Act No. 111/2006 Coll., regulating Assistance in Material Need, as amended (hereinafter the " Assistance on Material Need Act ") i. e. allowance for living, supplement for housing and extraordinary immediate assistance.

Failure to fulfil the prescribed medical treatment at the time of employee´s temporary incapacity to work is not and has never been listed among the legal grounds for not considering a person to be in material need. Such a person does not lose entitlement to family benefits (state social support benefits) and the access to social benefits in the form of assistance in material need benefits is guaranteed.

The Assistance in Material Need Act even covers persons who fail to meet the legal requirements for providing assistance in material need (if there is serious risk of impairment of health under Section 2 para 3 in connection with Section 36–37 of the on Assistance in Material Need Act, or in other justified cases in accordance with Section 3 para 3 of the Assistance in Material Need Act).

e) Sanction - it is preventive measure in Czech legal regulation; a person must be aware that misuse of all benefits, failing to comply with rules prescribed for verifying the occurrence, continuance of the contingency or for conduct of the beneficiaries, when a fraudulent claim was made etc., as stated in Article 68 of the Code.

f) Right to appeal in case of refusal of the benefit - judicial decisions concerning dismissal during temporary incapacity to work 21 Cdo 630/2015, 21 Cdo 5126/2014 when the court ruled in favour of employees (Article 70 of the Code).

Reduction of sickness benefit

The protection of the sickness insurance system against negative conduct of the insured individual, which is dangerous to society, is stipulated in Sec. 31 of the Act No 187/2006 Coll., Sickness Insurance Act, as amended. These include, in particular, cases of involvement in intentional misconduct (Sec. 15, Subsec. 2 of Act No 250/2016 Coll. Determining Liability for Administrative Delicts) or criminal activity within the meaning of Sec. 15 of Act No 40/2009 Coll., Criminal Code, as amended (such as assault of a guarded object, attacking a person, causing a traffic accident as a result of excessive consumption of drugs or spirit, another misdemeanour or crime of bodily harm, in which the attacker was injured). There must be a causal relation between the occurrence of temporary incapacity to work and the act that caused it. It does not apply to the insured individual who is a victim of the attack.

The reduction of the sickness benefit precedes a physician's report on the injury, eventually the Police report concerning suspicions of attempted crime. The District Social Security Administration also invites the insured individual to prove how the accident occurred (a cause of the accident and a description of all decisive facts).

The assessment of the possibility of reducing the sickness benefit is based on the statement of the insured individual (concerning the cause of the accident and description of all decisive facts), medical records, records of the Police of the Czech Republic on the statement of suspicion of the offense, on the report of the Integrated Rescue System, records from administrative infractions committees of a local or municipal authorities and other involved parties.

In such a procedure, the District Social Security Administration must be guided by the principle of objective (material) truth according to Sec. 3 of the Code of Administrative Procedure, i.e. it must have documents at its disposal which reliably establish the condition of the case, such as a record of an accident, medical records, statement of the insured individual, an observation of the investigative, prosecuting and adjudicating bodies etc. In case there are facts which undoubtedly justify the reduction of the sickness benefit, the District Social Security Administration shall decide on the entitlement to a sickness benefit in the amount of 50 per cent [Sec. 153 (1) (a), (2) (a); (a) and (5) of Act No 187/2006 Coll.] and inform the insured person concerning this decision in writing [Sec. 84 (2) c) of Act No 187/2006 Coll.].

In case the insured individual disagrees with the result of the procedure, he/she shall deliver to the District Social Security Administration within 30 days of the payment of the sickness benefit a written request to issue a decision stating the reasons for the disagreement. (Sec. 153 Subsec.6 and Sec. 84 Subsec.2 (c) of the Act No 187/2006 Coll.). By submitting this application, a proceeding concerning the sickness benefit within the meaning of the Administrative Procedure Code is commenced. From the date of application, the statutory administrative period for the decision has begun to run.

In case the negative conduct was not proved, the District Social Security Administration decides on full entitlement to sickness benefits and pays the difference to the insured individual.

Year

Number of administrative proceeding in total

Number of decisions concerning reduction of sickness benefit to 50 % in compliance with Rules of Administrative Procedure 

Number of decisions observing action based on fault of the insured individual on temporary incapacity to work

Number of decisions on granting the full entitlement of sickness benefit

2017

4186

2 275

273

2002

It follows from the above-mentioned data that the sickness benefit was reduced only to 273 insured individuals last year, which represents 0.006 % of the total number of 4 511 568 insured individuals in the Czech Republic.

In insured individual who has deliberately brought himself/herself into temporary incapacity to work with the aim to draw sickness benefit fraudulently and abuse the insurance system has no entitlement to sickness benefit [Act No 187/2006 Coll., Sickness Insurance Act, Sec. 25 a)]. The situation must be proved by District Social Security Administration. The procedure shall be the same as mentioned above. Nevertheless, such cases do not occur in practice.

Co-ordination of sickness benefit with disability and old-age pensions, Article 68(c) of the Code

The District Social Security Administration assesses the state of health of an insured individual based on application in writing of insured individual for a disability pension in accordance with the Pension Insurance Act (Sec. 38 et subs. - the conditions are described in detail Part IX Invalidity Benefit of the Consolidated Report). Grant and payment of the pension is carried out at the request of the insured individual, not by the decision of the State.

Disability and drawing of disability benefit do not prevent the pursuit of gainful employment and the benefit is not means-tested. The amount of disability pension depends on the level of disability granted and the length of insurance period.

Sickness benefit covers the insured individual with a benefit at the time of the loss of income from gainful employment (i.e. replaces regular income). At the time of temporary incapacity to work, the insured person cannot perform any work.

On the other hand, disability, especially at less serious levels, does not exclude an insured individual from work/employment. On the contrary, it may also allow full-time work (an asthmatic can work in a clear environment, a dancer in an office, a former driver with a hearing disorder in a workshop etc.). In such cases, the insured individual receives a regular income as well as disability pension of the appropriate level.

Similarly, the entitlement to an old-age benefit is based on application in writing by insured individual in accordance with the Pension Insurance Act (Sec. 54 et Subs. - the conditions are described in detail Part V Old-age Benefit of the Consolidated Report), not by the decision of the State.

Further benefits are guaranteed to all insured individuals by the system of assistance in material need, unemployment benefits, family benefits (described in relevant parts of the Consolidated Report).

III - 9. Right of complaint and appeal

See under Part XIII-2

Article 29. C130

Every claimant shall have a right of appeal in the case of refusal of the benefit or complaint as to its quality or quantity.

An insured person has a right to lodge an appeal against a decision issued by the appropriate District Social Security Administration concerning the disallowance of his/her claim for sickness insurance benefits (sickness and maternity benefits), the amount of the benefit, the reduction of the benefit or the withdrawal or suspension of the payment thereof in accordance with Act No. 187/2006 Coll., the Sickness Insurance Act, as amended. The appeal is decided by a superior authority which is the Czech Social Security Administration. The first instance proceedings and appellate proceedings are governed by Act No. 500/2004 Coll., the Rules of Administrative Procedure, as amended. An insured person can bring an action against the decision of the appellate authority to a competent regional court (by Act No. 150/2002 Coll., the Judicial Rules of Procedure).

Article 7 of C130 defines the contingency as an “incapacity for work resulting from sickness and involving suspension of earnings, as defined by national legislation” The wage compensation at the beginning of the temporary incapacity to work is paid by the employer, the contingency envisaged by the Convention caused by loss of earnings thus arises with the delay of 14 days. For this reason, the first 14 days of the temporary incapacity to work is not considered as a part of supporting period which was therefore prolonged form 365 days to 380 days in order to formally conform to the requirement of 52 weeks. As the wage compensation is not part of the sickness benefits system, the administration of the scheme is still entrusted to a public authority in its entirety.

Act No 118/2000 Coll., Regulating Protection of Employees in Case of Insolvency of the Employer and Amending Some Laws enables wage compensation (Section 3 Subsection b of the Act ) being paid by the Regional Branch of the Labour Office of the Czech Republic to an employee in case of employer´s insolvency. Salary compensation during first 14 the days of the temporary incapacity to work is considered as a wage claim.

III - 10. Financing and Administration

See under Part XIII-3

 Article 30. C130

1. Each Member shall accept general responsibility for the due provision of the benefits provided in compliance with this Convention and shall take all measures required for this purpose.

2. Each Member shall accept general responsibility for the proper administration of the institutions and services concerned in the application of this Convention.

Article 31. C130

Where the administration is not entrusted to an institution regulated by the public authorities or to a government department responsible to a legislature:

(a) representatives of the persons protected shall participate in the management under prescribed conditions;

(b) national legislation shall, where appropriate, provide for the participation of representatives of employers;

(c) national legislation may likewise decide as to the participation of representatives of the public authorities.

The competent authority in the field of sickness insurance (and maternity benefits) is the District Social Security Administration which is responsible for the implementation of the sickness insurance scheme and provides sickness benefits. Sickness benefits are paid by the District Social Security Administration at the latest within one month following the day on which the complete documents relating to payment of benefits were received by the District Social Security Administration.

Total revenues for the year 20198[14]

sickness insurance  CZK 34,389,751 35,589,434 thousand

Total expenditures for the year 20198[15]

Observation of the Czech Republic

The District Social Security Administration is obliged to pay out a sickness benefit from the 15th day of temporary incapacity to work, i. e. does not provide an employee with any compensatory wage. 

The so-called “compensatory wage scheme managed by the employer” is not part of the sickness benefits system as explained below. Thus, the representatives of employees do not participate in such a management.

Additional information

Attention has also to be paid to the new rules on employer’s liability for wage compensation during the first two weeks of sick leave. Apart from the norms pertaining to the level and duration of the payments, the principles on solidarity and state responsibility also have to be taken into account. First, according to Article 70 of the ECSS, the benefits must be borne collectively by way of insurance contributions or taxation or both. In contrast to this, the wage compensation during the initial two weeks of illness is paid solely by the employer. Secondly, in the same Article (and in C130 Article 30) it is stated that the government is responsible for the due provision of the benefits. Important in this respect is whether the employer’s obligation is sufficiently regulated in such a way that the stipulated income replacement for the employee is guaranteed. This is not clear in the Czech case. What happens, for instance, if the employer does not pay the required compensation, either willingly or unwillingly? Is a safety net provided in these cases? Furthermore, where the administration is not entrusted to a public authority, the international standards require representatives of the persons protected to participate in the management, which is not the case during this period of employers’ liability. In view of these common principles on solidarity and good governance, it is not obvious that this initial period of employers’ liability is in line with the conventions. As yet, the supervising committees have not commented on this issue, but these questions will have to be dealt with in the next reports of the government on the application of both the European Code and ILO C130. [Does the state guarantee the wage compensation for the first 14 days in case of the employer has not fulfilled the obligation?]

Observation of the Czech Republic

Article 7 of C130 defines the contingency as an “incapacity for work resulting from sickness and involving suspension of earnings, as defined by national legislation” Because of the wage compensation paid by the employer, the contingency envisaged by the Convention caused by loss of earnings thus arises with the delay of 14 days. For this reason, the first 14 days of the temporary incapacity to work is not considered as a part of supporting period which was therefore prolonged form 365 days to 380 days in order to formally conform to the requirement of 52 weeks. As the wage compensation is not part of the sickness benefits system, the administration of the scheme is still entrusted to a public authority in its entirety.

Act No 118/2000 Coll., Regulating Protection of Employees in Case of Insolvency of the Employer and Amending Some Laws provides for the possibility of wage compensation (section 3 subsection b of the Act) being paid by the Regional Branch of the Labour Office of the Czech Republic.

An employee may file a claim for payment of wage compensation, as in the case of non-payment of wages.

An employee can also contact the State Labour Inspection Authority which can impose an administrative fine on an employer.


Part IV. Unemployment benefit

The Czech Republic has accepted the obligations resulting from Part IV of the ECSS.

Category

Information available

Information missing / questions raised by the CEACR

IV-1. Regulatory framework

Art.19 ECSS

IV-2. Contingency covered

Art.20 ECSS

IV-3. Persons Protected

Art.21 ECSS*

IV-4. Level and Calculation of Benefit

Art.22 ECSS*

IV-5. Qualifying period

Art.23 ECSS

IV-6. Minimum duration of Benefit

Art.24 ECSS

IV-7. Suspension of Benefit

Art.68 ECSS

IV-8. Right of complaint and appeal

Art.69 ECSS

IV-9. Financing and Administration

Art.70*,71 ECSS

* Please update statistical data, in accordance with the Report form for C102/ECSS.

List of applicable legislation

Update 2018

§  Notification of MLSA No. 448/2016 Coll., on the Average Wage Publishing in the National Economy for the 1st to 3rd Quarter of 2016 for the Purposes of the Employment Act

§  Notification of MLSA No. 447/2017 Coll., on the Average Wage Publishing in the National Economy for the 1st to 3rd Quarter of 2016 for the Purposes of the Employment Act

§  Act No. 500/2004 Co ll., the Rules of Administrative Procedure, as amended

§  Act No. 111/2006 Coll., the Assistance in Material Need Act, as amended

§  Act No. 589/1992 Coll., on Social Security Premiums and the Contribution to the State Employment Policy, as amended by Acts Nos. 189/2006 Coll., 264/2006 Coll., 585/2006 Coll., 153/2007 Coll., 261/2007 Coll., 296/2007 Coll., 305/2008Coll., 2/2009 Coll., 41/2009 Coll., 158/2009 Coll., 221/2009 Coll., 227/2009 Coll., 285/2009 Coll., 303/2009 Coll., 362/2009 Coll., 347/2010 Coll., 73/2011 Coll.

§  Act N. 435/2004 Coll., Employment Act, as amended

IV - 1. Regulatory framework

Article 19. ECSS

Each Contracting Party for which this Part of this Code is in force shall secure to the persons protected the provision of unemployment benefit in accordance with the following Articles of this Part.

                               

Legal regulations on unemployment benefits are contained in Act No. 435/2004 Coll., Employment Act, as amended, which among other things defines the requirements for entitlement to unemployment benefits, the determination of its amount as well as support period, the period during which the unemployment benefits are provided to the job seeker. In the reference period the system of providing unemployment benefits was not changed.

IV - 2. Contingency covered

Article 20. C102 and ECSS

The contingency covered shall include suspension of earnings, as defined by national laws or regulations, due to inability to obtain suitable employment in the case of a person protected who is capable of, and available for, work.

The Act No 435/2004 Coll., Employment Act, as amended, determines the conditions under which a natural person may be included into the register of job seekers and the conditions under which the said individual is entitled to unemployment benefits.

A job seeker is an individual who personally applies for finding a suitable employment at the regional branch of the Labour Office. He/she applies at the branch in whose territorial jurisdiction the natural person has the residence and when legally stipulated conditions are met, he/she is included in the register of job seekers by the Labour Office (Section 24 of the Employment Act).

The definition of mediation of a suitable employment in Sec. 20 of Employment Act, is inspired by  Article 21(2) of the ILO Convention No. 168 (despite the fact this Convention has not been ratified by the Czech Republic) according to which the job seeker’s health, qualification, skills, abilities, the length of the previous employment, and accommodation possibilities, and also the accessibility of the work (not only in terms of a distance, but also frequency of the public transport - i.e. transportation services in the area) shall be taken into account  to “appropriate extent”.

Observation of the Czech Republic

The suitable employment definition set out in Sec. 20 of the Employment Act stipulates:

(1)   Each natural person has the right to suitable employment mediation. Unless stipulated otherwise, a suitable employment is a job,

a)      which imposes the obligation to pay premiums for pension insurance and contributions to the state employment policy,

b)      the working time of which is at least 80 % of the regular weekly working time,

c)      which has been agreed for an indefinite period or for a fixed term of more than 3 months, and

d)      which corresponds to the health of the natural person, and, if possible, his or her qualifications, skills, length of previous employment, accommodation possibilities and the traffic accessibility of the work.

As regard to the current situation on the labour market, vacant /suitable jobs, personal situation of the jobseekers etc., the individual cooperation and attitude between Labour Office officer and job seeker cannot be excluded.

The Government notes that such a necessity for a tailored approach (including the necessary leeway for individual consideration on a case-by-case basis) is recognised in Article 21(2) of C168 as well.

Measures for job seekers registered at the Employment Office for more than one year have been tailored to their specific needs by Active Employment Policy (AEP) covering vulnerable groups at the labour market (such as unskilled or low-skilled people, people older than 55 years, people with health restrictions, graduates, etc.). For such a job seeker´ category a suitable employment includes also an employment concluded for an indefinite period, fixed term employment for a period shorter than 3 months or in which the working time makes less than 80% of the prescribed weekly working hours. Other conditions determined by law (Sec. 20 of the Employment Act) must be met.

Publicly beneficial work[16] is one of the AEP tools designed especially for low-skilled people. The main aim is to support employment and increase job seekers’ chance by offering special care in employment mediation due to low job opportunities[17]. The publicly beneficial work helps to maintain and restore the basic working habits of jobseekers and motivates them to work through earnings from work rather than from social or unemployment benefits.  This is a time-limited job opportunity mainly focused on maintenance of the public space, cleaning and maintenance of public buildings, and may also include the work of a personal assistant for disabled people, charitable work, social, cultural, auxiliary staff at schools and school facilities, maintenance work in favour of municipalities, state and charitable institutions and civic associations.

It is organised by Labour Offices which concludes an agreement with the employer (i.e. the municipality or a company) who creates such an activity for a jobseeker carried out within the framework of the employment relationship and an employee is paid wages instead of drawing unemployment benefit. The Employment office provides employers with labour costs for this work up to a maximum of 24 months (including tax, health and social insurance contribution paid by the employer for employees).

IV - 3. Persons protected

Article 21. C102 and ECSS

The persons protected shall comprise:

(a) prescribed classes of employees, constituting not less than 50 per cent of all employees; or

(b) all residents whose means during the contingency do not exceed limits prescribed in such a manner as to comply with the requirements of Article 67.

The Czech Republic refers to letter a). An individual may not be included in the job seekers’ register if he/she is in an employment or service relationship (with certain specified exceptions) as well as a self-employed person, an individual gainfully active abroad, an associate or company secretary in a commercial organisation or a member of cooperative, a supervisory board or a board of directors, if he/she performs work for a company or a cooperative which is remunerated  at a certain amount, a judge, a member of a parliament, an individual acknowledged as temporarily incapable of work, serving sentences or is in custody, etc. (Section 25 of the Employment Act).

                                                                                                                                          

Data of 1 January 2017

A. Number of covered employees:                                            4,511,680 persons

           Number of self-employed persons covered                          680,962 persons

B. Total number of employees:                                                 - 4,511,680 persons

C. 100%

Data of 1 January 2018

A. Number of covered employees:                                            4,586,518 persons

           Number of self-employed persons covered                            692,110 persons

B. Total number of employees:                                                 4,586,518 persons

C. 100%

Source: Czech Social Security Administration

Data of 1 January 2019   

A. Number of covered employees:                                                           4,597,758 persons

           Number of self-employed persons covered                                         702,432 persons

B. Total number of employees:                                                                 4,597,758 persons

C. 100%

IV - 4. Level and Calculation of Benefit

Article 22. C102 and ECSS

1. Where classes of employees are protected, the benefit shall be a periodical payment calculated in such manner as to comply either with the requirements of Article 65 or with the requirements of Article 66.

2. Where all residents whose means during the contingency do not exceed prescribed limits are protected, the benefit shall be a periodical payment calculated in such a manner as to comply with the requirements of Article 67. [provided that a prescribed benefit shall be guaranteed, without means test, to the prescribed classes of employees determined in accordance with Article 21.a. - ECSS].

Chapter I

A.

The Employment Act stipulates that the amount of an unemployment benefit and support during a retraining is designed as a percentage rate of average net monthly earnings which has been ascertained in the case of the job seeker and was last used for employment purposes in his/her last terminated employment during the specified period according to employment regulations; if these employment regulations were not applied due to the provisions set out in the special legal regulations pertaining to the legal regulations under which the job seeker performed his/her last completed employment, the average of a job seeker´s  net monthly earnings is ascertained for the purposes of unemployment benefits and support during analogously according to employment regulations.

The amount of unemployment benefits and support during retraining for job seeker, who was self-employed prior to be included in the register of job seekers, is set as a percentage rate of the last assessment base in the specified period recalculated for 1 calendar month.

The unemployment benefit amounts to 65 % of the average net monthly earnings for the first two months of unemployment (i.e. the supporting period), for the next two months it is 50 % and 45 % of the average net monthly earnings or assessment base for the remaining period of support. The percentage rate for support during retraining amounts to 60 % of the average net monthly earnings or of assessment base.

If the job seeker has terminated an employment without serious grounds on his own or by an agreement with employer before inclusion in the register of job seekers, he/she is entitled to unemployment benefits for the entire supportive period of 45 % of the average net monthly earnings or assessment base.

If a person has fulfilled the conditions of previous employment by means of employment (see below on Article 23) and if this period has been assessed as being the last employment, the unemployment benefit is set at the amount of multiple of 0.15 for the first two months of an average wage in the national economy for the first to third quarters of the calendar year preceding the year in which the benefit application was submitted, in the amount of multiple of 0.12 for the next 2 months and multiple of 0.11 during the remaining period of support period.

There is the maximum upper limit determined for the amount of unemployment benefits which is determined as multiple of 0.58 of the average wage in the national economy for the first to third quarter of the calendar year preceding the calendar year in which the application for unemployment benefits was submitted. The maximal amount of a support during retraining has been set at multiple of 0.65 of the average national wage for the first to the third quarter of the calendar year preceding the calendar year in which the requalification od a job seeker started. The maximum amount of unemployment benefits was CZK - 15,660 in 2017, CZK 16,682 in 2018, and CZK 18,111 in 2019 and 19,334 in 2020. The maximum amount of support during retraining was CZK 17,550 in 2017,CZK 18,695 in 2018, and CZK 20,297 in 2019CZK and 21,729 in 2020.

Unemployment benefit is due once the conditions has been met, regardless of the individual´s assets.

Chapter II

Data of 1 January 20182019

D. to G.

The average net monthly wage of a skilled worker with two children amounted to CZK 27,404 25,646.

The calculation of unemployment benefits of 1 January, 20189:

The amount of benefit of a standard skilled worker during the first two months of unemployment:

Benefit amount

(65% of the preceding average income)

/ of net wage /

% of the original income *)

CZK 17,81316,670

65%

The amount of benefit of a standard skilled worker for the next two months of unemployment

Benefit amount

(50 % of the preceding average income)

/ of net wage /

% of the original income

CZK 13,70212,823

50%

The amount of benefit of a standard skilled worker for the remaining support period

Benefit amount

(45 % of the preceding average income)

/ of net wage /

% of the original income

CZK 12,33211,541

45%

The average monthly benefit of a skilled worker throughout the entire support period was amounted to  16,67017,813 x 2 + 12,82313,702 x 2 + 11,54112,332/5= CZK 14,10515,072.

The ratio betweenthe income after the insurance claim (unemployment benefits) and the income prior the insurance claim (net salary) is (14,10515,072 : 25,64627,404) x 100 = 55,0%.

The European Code of Social Security requires the level of unemployment benefits in comparison to preceding wage of at least 45%. The Czech Republic fulfils the required level.

IV - 5. Qualifying period

Article 23. C102 and ECSS

The benefit specified in Article 22 shall, in a contingency covered, be secured at least to a person protected who has completed such qualifying period as may be considered necessary to preclude abuse.

Job seekers are entitled to unemployment benefit, if they have participated in pension insurance for at least 12 months during the decisive period of employment or other gainful activity under the Pension Insurance Act (Section 39 of the Employment Act). The decisive period for the assessment of entitlement for unemployment benefits is the last two years prior to inclusion in the register of job seekers (Section 41 of the Employment Act).

In the Czech Republic, an entitlement to unemployment benefits is conditioned by completing of the required period of pension insurance obtained in an employment or in other gainful activity. The necessary period of pension insurance is 12 months during the last two years. Within this time, the so-called substitute employment period can be included.

A substitute employment period is considered to be:

a) The period of preparation for work by an individual with disabilities.

b) The period of drawing of a disability benefit for level-three disability.

c) The period of providing personal care for a child up to age of four years.

d) The period of providing personal care for an individual who is considered a person dependent on the assistance of another natural person in level II (medium dependence), level III (heavy dependence) or level IV (complete dependence) according to Section 8 of Act No. 108/2006 Coll., Social Services Act), if such an individual lives permanently with a job seeker and pay the costs of their needs jointly; these conditions are not required in the case of a person who is considered a close individual for purposes of pension insurance.

e) The performance of a long-term volunteer service upon the basis of a volunteer contract concluded with posting organization which has been accredited by the Ministry of Interior according to Act No. 198/2002 Coll., Volunteer Service Act, or of the performance of community service upon the basis of a community service contract according to Act No. 111/2006 Coll., Assistance in Material Need Act, provided the extent of the realised community service in exceeds 20 hours in a calendar week.

f) Personal care for an individual under ten years of age who is considered to be a person with level I (light dependence) dependent on the assistance of another person according to the special legal regulation.

g) The period of the duration of temporary incapacity to work or of ordered quarantine of a person after the termination of a gainful activity, which established his/her participation in the sickness insurance under a special law, if a person did not bring about temporary incapacity to work intentionally and if the temporary incapacity to work or ordered quarantine did not arise at the time of such a gainful activity or of the protection period under a special law (with effect since 1 October 2015).

IV - 6. Minimum duration of Benefit

Article 24. C102 and ECSS

1. The benefit specified in Article 22 shall be granted throughout the contingency, except that its duration may be limited,

(a) where classes of employees are protected, to 13 weeks within a period of 12 months, [or to 13 weeks in each case of suspension of earnings - ECSS]; or

(b) where all residents whose means during the contingency do not exceed prescribed limits are protected, to 26 weeks within a period of 12 months; [provided that the duration of the prescribed benefit, guaranteed without means test, may be limited in accordance with sub‑paragraph a of this paragraph - ECSS].

2. Where national laws or regulations provide that the duration of the benefit shall vary with the length of the contribution period and/or the benefit previously received within a prescribed period, the provisions of paragraph 1 of this article shall be deemed to be fulfilled if the average duration of benefit is at least 13 weeks within a period of 12 months.

3. The benefit need not be paid for a waiting period of the first seven days in each case of suspension of earnings, counting days of unemployment before and after temporary employment lasting not more than a prescribed period as part of the same case of suspension of earnings.

4. In the case of seasonal workers the duration of the benefit and the waiting period may be adapted to their conditions of employment.

1. The period of provision of unemployment benefits (support period) depends on the age of the beneficiary. The support period for a job seeker under 50 years is 5 months, between 50 and 55 years of age it is 8 months and over 55 years the support period is 11 months. The decisive factor for the length of the support period is the job seeker´s age at the date of the submission of application for unemployment benefits.

The length of the support period is also affected by the fact as to whether the job seeker has used the entire support period at any time during the last two years prior to inclusion to the unemployment register.  If the entire support period has not been used and the job seeker has completed pension insurance period of at least 3 months by an employment or other gainful activity after the end of the used part of the support period, such a job seeker is entitled to receive unemployment benefits for the entire support period. If a said job seeker has completed a support period of less than 3 months, he/she is entitled to unemployment benefits for the remaining support period. At the same time, the requirement of the total qualification period of previous employment must also be completed.

If the entire support period had expired in the last two years prior to the inclusion of the job seeker in the job seekers´ register, a job seeker is entitled to receive unemployment benefits if he/she has acquired a pension insurance of at least six since the full use of the original support period; this period is not required when an employment was terminated for health reasons or because an employer breached an of the essential obligation arising from the legal regulations, a collective agreement or agreed employment conditions. The condition of the total period of previous employment must been fulfilled at the same time.

Entitlement to unemployment benefits expires at the end of the support period, by termination of the registration in a register of job seekers or by removal from the register.

2. Duration of provision of unemployment benefits is not graded according to the contribution period or by benefits previously received during a specified period.

3. The waiting period under the European Code of Social Security is not directly determined in the Employment Act.

A job seeker is entitled to unemployment benefits upon the fulfilment of set conditions since the date of the submission of a written unemployment benefit. If a job seeker applies for unemployment benefits at the latest within 3 working days after termination of employment or of other gainful activity or of activities considered to constitute a substitute employment period, the unemployment benefits are awarded since the day following the termination of the employment or aforementioned activities.

A job seeker to whom redundancy payment was paid in the last employment, the unemployment benefits is provided only after expiration of a period determined by the number of multiples of average monthly salary of corresponding to redundancy payment stipulated pursuant to other legal regulations. Provision of unemployment benefits during entire period stipulated in the Employment Act is not affected.

The job seeker who is entitled to unemployment benefit, but he/she had not been paid any form of redundancy payment based on the termination of employment/service relationship on the date of termination of employment or service, will be provided with a compensation by the Labour Office from the day of placement into the job seekers´ register for a period corresponding to the amount of the redundancy payment. The amount of compensation is determined by multiplying the period for which redundancy payment severance pay pertains and 65 % of the average net monthly income of the job seeker. Unemployment benefits will be provided to a job seeker after expiration of the period covered with said compensation.

4. The Employment Act does not determine any special conditions for granting unemployment benefits to seasonal workers. The general system is applied here.

IV - 7. Suspension of Benefit

See under Part XIII-1, Part III-8 (Sickness Benefit)

Job seekers are not entitled to apply for unemployment benefits if they are persons:

·         Who has been dismissed from employment in the period of the last 6 months before his/her inclusion in the job seekers’ register due to particularly gross breach of their obligations arising from the legal regulations pertaining to the work which they performed; this also applies in the case of termination of any other employment relation for a similar reason.

·         Who has been dismissed from employment in the period of the last 6 months before the application for inclusion to the job seekers register due to particularly gross breach of their obligations arising from the Section 301a of the Labour Code.

·         Who becomes entitled to a service allowance according to the special legal regulations (Section 131 et seq. of Act No. 221/1999 Coll., Professional Soldiers Act, Section 157 et seq. of Act No. 361/2003 Coll., Providing the Service Conditions for the Members of Security Forces, as amended), and this allowance is higher than the unemployment benefit which the job seeker would otherwise be entitled to, if he/she were not entitled to the service allowance;

·         Who performs any of activities stipulated in Section 25 Subsection 3 of the Employment Act to the date on which the unemployment benefits should be granted, i.e., works on the basis of an employment or a service relationship with monthly earnings not exceeding half the minimum wage; performs work under the contract for work or an agreement on working activity with a monthly earning or reward per one-month period for which it is stated, not exceeding half the minimum wage;

·         Who is on the date on which the unemployment benefits are to be granted, in the position of one of the categories mentioned in Section 25 par. 1 letter c) to f) and s) i.e. e.g. a partner or a manager of a limited liability company, a member of the Board or the Management Board of a joint stock company, a member of a supervisory board of a company; the amount of earnings or remuneration is not taken into account; it does not apply to a member of a housing cooperative, who performs work or services for the housing cooperative outside the employment relationship, or is responsible for the business management of a housing cooperative (effective since 1 October, 2015).

IV - 8. Right of complaint and appeal

See under Part XIII-2

A job applicant may lodge an appeal against the decision of the regional branch of the Labour Office of the Czech Republic (hereinafter “the Labour Office”) concerning a removal from the register of job applicants, of the suspension/termination of payment of unemployment and retraining benefits within 15 days since the notification of the decision, in accordance with the instructions set out in the decision. The appeal will be decided by the appellate administrative authority – the Ministry of Labour and Social Affairs.

With regard to reduction/suspension of payment of unemployment and retraining benefits, the job applicant may lodge an appeal to the regional branch of the Labour Office in the administrative proceedings. The Ministry of Labour and Social Affairs is the administrative authority of appeal.

IV - 9. Financing and Administration

See under Part XIII-3

§  Administration and payment of unemployment benefits is managed by the state authorities. The regional branch of the Labour Office decides on unemployment benefits.

§  The Labour Office decides on granting of unemployment benefits and retraining benefits (Section 39 Subsection 3 and Section 40 subsection 2 of Act No. 435/2004 Coll., the Employment Act, as amended).

§  The costs of provided unemployment benefits are paid from contributions to the state employment policy. The Czech Social Security Administration collects the contribution to the state employment policy along with pension contributions from taxpayers (i.e. from employees through their employers along with the contributions from employers themselves). The contribution is a part of the income side of the state budget and - vice versa – the benefits form a part of the state budget expenditure. As such, it is included in the relevant budgetary chapter of the Ministry of Labour and Social Affairs. Through the Ministry, resources are distributed to the regional branches of the Labour Office.

            Total revenue for the year 20189[18]

       Contribution to the state´s employment policy CZK 18,100,547,02 18,891,481,80 thousand

Total expenditures for the year 20189[19]

Unemployment benefits........................ CZK 8,051,140,60 7,443,333,04 thousand

Part V. Old-age Benefit

The Czech Republic has accepted the obligations resulting from Part III of C128 and Part V of the ECSS.

Category

Information available

Information missing / questions raised by the CEACR

V-1. Regulatory framework

Art.25 ECSS, Art.14 C128

V-2. Contingency covered

Art.26 ECSS, Art.15 C128

V-3. Persons Protected

Art.27 ECSS, Art.16 C128*

V-4. Level and Calculation of Benefit

Art.28 ECSS, Art.17 C128*

V-5. Adjustment of Benefit

Art.65(10)ECSS, Art.66(8)ECSS, Art.29 C128*

V-6. Qualifying period

Art.29 ECSS, Art.18 C128

V-7. Duration of Benefit

Art.30 ECSS, Art.19 C128

V-8. Suspension of Benefit

Art.32 C128, Art.68 ECSS

Art.32-33 C128

V-9. Right of complaint and appeal

Art.69 ECSS, Art.34 C128

V-10. Financing and Administration

Art.70*,71 ECSS  

Art.30,35,36 C128

* Please update statistical data, in accordance with the Report form for C102/ECSS/C128.

List of applicable legislation

·         Government Regulation No. 343/2017 Coll. to Stipulate Pension Increase in 2018. For pension insurance purposes, also sets the amount of the general assessment base for 2016, and the amount of the recalculation coefficient to adjust the general assessment base for 2018, as well as adjusts the amounts to set the calculation base.

·         Act No. 150/2002 Coll., the Judicial Rules of Procedure, as amended

·         Act No. 155/1995 Coll., Pension Insurance Act, has been amended by Acts No. 220/2011 Coll., No. 341/2011 Coll., No. 348/2011 Coll., No. 364/2011 Coll., No. 365/2011 Coll., No. 428/2011 Coll., No. 458/2011 Coll., No. 470/2011 Coll., No. 314/2012 Coll., No. 401/2012 Coll.,  No. 403/2012 Coll., No. 463/2012 Coll., No. 267/2013 Coll., No. 274/2013 Coll., No. 303/2013 Coll., Legislative Measure of the Senate No. 344/2013 Coll., No. 182/2014 Coll., No. 183/2014  Coll., No. 250/2014 Coll., No. 267/2014 Coll., No. 332/2014 Coll., No. 131/2015 Coll., No. 377/2015 Coll., No. 47/2016 Coll., No. 137/2016 Coll., No. 190/2016 Coll., No. 212/2016 Coll., No. 213/2016 Coll., No. 24/2017 Coll., No. 99/2017 Coll., No. 148/2017 Coll.  No . 150/2017 Coll., No. 203/2017 Coll., No. 148/2017 Coll., No. 259/2017 Coll., No. 310/2017 Coll., No. 191/2018 Coll., 32/2019 Coll., 244/2019 Coll., 315/2019 Coll.

 

·         Act No. 582/1991 Coll., on the Organization and Implementation of Social Security has been amended by Acts No. 220/2011 Coll., No. 263/2011 Coll., No. 329/2011 Coll., No. 341/2011 Coll., No. 348/2011 Coll., No. 364/2011 Coll., No. 365/2011 Coll., No. 366/2011 Coll., No. 367/2011 Coll., No. 375/2011 Coll., No. 428/2011 Coll., No. 458/2011 Coll., No. 470/2011 Coll., No. 167/2012 Coll., No. 399/2012 Coll.,  No. 401/2012 Coll., No. 403/2012 Coll., No. 274/2013 Coll., No. 303/2013 Coll., No. 313/2013 Coll., Legislative Measure of the Senate No. 344/2013 Coll., No. 64/2014 Coll., No. 136/2014  Coll., No. 250/2014 Coll., No. 251/2014 Coll., No. 267/2014 Coll., No. 332/2014 Coll., No. 131/2015 Coll., No. 317/2015 Coll., No. 377/2015 Coll., No. 47/2016 Coll., No. 137/2016 Coll., No. 190/2016 Coll., No. 213/2016 Coll., No 298/2016 Coll., No. 24/2014 Coll., No. 99/2017 Coll., No. 148/2017 Coll., No. 259/2017 Coll., No. 310/2017 Coll., No. 92/2018 Coll., No. 335/2018 Coll.,  No. 111/2019 Coll. 111/2019 Coll., 164/2O19 Coll., 228/2019 Coll., 315/2019 Coll.

·         Government Regulation No. 461/2006Coll., on Increase of Pensions in 2007;

·         Government Regulation No. 462/2006 Coll., on Determining a Personal Assessment Base in 2005 and an Amount of Rates for Conversion for Regulation of the Personal assessment base in 2005 and Regulation of Amounts to Specify a Calculation Base for the Purpose of Pension Insurance;

·         Government Regulation No. 256/2007Coll., on Increase of Pensions in 2008;

·         Government Regulation No. 257/2007Coll., on Determining a Personal Assessment Base in 2006 and an Amount of Rates for Conversion for Regulation of the Personal assessment base in 2006 and Regulation of Amounts to Specify a Calculation Base for the Purpose of Pension Insurance;

·         Government Regulation No. 211/2008 Coll., on Increase of Pensions in 2008;

·         Government Regulation No. 365/2008 Coll., on Determining a Personal Assessment Base in 2007 and an Amount of Rates for Conversion for Regulation of the Personal assessment base in 2007 and Regulation of Amounts to Specify a Calculation Base for the Purpose of Pension Insurance;

·           Government Regulation No. 339/2009 Coll., on Determining a Personal assessment base in 2008 and an Amount of Rates for Conversion for Regulation of the Personal assessment base in 2008 and Regulation of Amounts to Specify a Calculation Base for the Purpose of Pension Insurance;

·         Government Regulation No. 281/2010 Coll., on Pension Increase in 2011

·         Government Regulation No. 283/2010 Coll., which, for pension insurance purposes, sets the amount of the general assessment base for 2009 and the amount of the recalculation coefficient to adjust the general assessment base for 2009, and which adjusts the amounts to set the calculation base;

·         Government Regulation No. 281/2011 Coll., on Increase of Pensions in 2011;

·         Decree No. 286/2011 Coll. on Pension Increase in 2012. For pension insurance purposes, this Decree also sets the amount of the general assessment base for 2010 and the amount of the recalculation coefficient to adjust the general assessment base for 2010, as well as adjusts the amounts to set the calculation base.

·         Decree No. 324/2012 Coll. on Pension Increase in 2013. For pension insurance purposes, this Decree also sets the amount of the general assessment base for 2011 and the amount of the recalculation coefficient to adjust the general assessment base for 2013, as well as adjusts the amounts to set the calculation base.

·         Decree No. 296/2013 Coll. on Pension Increase in 2014. For pension insurance purposes, this Decree also sets the amount of the general assessment base for 2012 and the amount of the recalculation coefficient to adjust the general assessment base for 2014, as well as adjusts the amounts to set the calculation base.

·         Decree No. 208/2014 Coll. on Pension Increase in 2015. For pension insurance purposes, this Decree also sets the amount of the general assessment base for 2013 and the amount of the recalculation coefficient to adjust the general assessment base for 2015, as well as adjusts the amounts to set the calculation base.

·         Decree No. 244/2015 Coll. on Pension Increase in 2016. For pension insurance purposes, this Decree also sets the amount of the general assessment base for 2014 and the amount of the recalculation coefficient to adjust the general assessment base for 2016, as well as adjusts the amounts to set the calculation base.

·         Government Regulation No. 325/2016 Coll. stipulating Pension Increase in 2017. For pension insurance purposes, this Government Regulation also sets the amount of the general assessment base for 2015 and the amount of the recalculation coefficient to adjust the general assessment base for 2017, as well as adjusts the amounts to set the calculation base.

·         Government Regulation No. 343/2017 Coll. to stipulate Pension Increase in 2018. For pension insurance purposes, also sets the amount of the general assessment base for 2016, and the amount of the recalculation coefficient to adjust the general assessment base for 2018, as well as adjusts the amounts to set the calculation base.

·         Act No. 244/2019 Coll., amending Act No. 155/1995 Coll.

·         Government Regulation No. 260/2019 Coll., stipulating pension insurance purposes for the amount of the general assessment base for 2018 and the amount of the recalculation coefficient to adjust the general assessment base for 2018, the amounts to set the calculation base for 2020 as well as basic amount and increase of percentage amount of pensions in 2020.

V - 1. Regulatory framework

Article 25. C102 and ECSS

Each Member (Contracting Party) for which this part of this Convention (Code) is in force shall secure to the persons protected the provision of old‑age benefit in accordance with the following Articles of this Part.

Article 14. C128

Each Member for which this Part of this Convention is in force shall secure to the persons protected the provision of old-age benefit in accordance with the following Articles of this Part.

V - 2. Contingency covered

Article 26. C102 and ECSS

1. The contingency covered shall be survival beyond a prescribed age.

2. The prescribed age shall be not more than 65 years or such higher age [that the number of residents having attained that age is not less than 10 per cent of the number of residents under that age but over 15 years of age - ECSS] as may be fixed by the competent authority with due regard to the working ability of elderly persons in the country concerned.

3. National laws or regulations may provide that the benefit of a person otherwise entitled to it may be suspended if such person is engaged in any prescribed gainful activity or that the benefit, if contributory, may be reduced where the earnings of the beneficiary exceed a prescribed amount and, if non-contributory, may be reduced where the earnings of the beneficiary or his other means or the two taken together exceed a prescribed amount.

Article 15. C128

1. The contingency covered shall be survival beyond a prescribed age.

2. The prescribed age shall be not more than 65 years, or such higher age as may be fixed by the competent authority with due regard to demographic, economic and social criteria, which shall be demonstrated statistically.

3. If the prescribed age is 65 years or higher, the age shall be lowered, under prescribed conditions, in respect of persons who have been engaged in occupations that are deemed by national legislation, for the purpose of old-age benefit, to be arduous or unhealthy.

The prescribed age according to Article 26 ECSS and Article 15 C128 in 20192020

For persons who obtain at least 15 years of insurance (employment time without non-contributory periods) or 20 years of insurance (including non-contributory periods) the prescribed age for entitlement for old age pension is 67 years and eight ten months (for persons born in 19512) or 67 years and ten months (for persons born in 1952) in 201920. For persons who completed longer contribution period of at least 30 years of contributions (only the period of employment without any non-contributory periods) or 35 years of contributions (with non-contributory periods), the entitlement for an old-age pension arises at lower age in 20192020:

63 years and six months for men born in 1956 or 63 years and eight months for men born in 1957, 63 years and two months for childless women (born in 1956) or 63 years and eight months (for persons born in 1957), 62 years and two months (for persons born in 1957) or 62 years and eight months (for persons born in 1958) for women who raised one child, 61 years and two months (for persons born in 1958) or 61 years and eight months (for persons born in 1959) for women who raised two children, 60 years and two months (for persons born in 1959) or 60 years and eight months (for persons born in 1960) for women who raised three and four children and 59 years and two months (for persons born in 1960) or 59 and eight months (for persons born in 1961) for women who raised five and more children.

63 years and four months for men born in 1955 or 63 years and six months for men born in 1956, 63 years and two months for childless women, 62 years and two months for women who raised one child, 61 years and two months for women who raised two children, 60 years and two months for women who raised three and four children and 59 years and two months for women who raised five and more children .

For the prescribed age of 67 years and ten months, the requirement that the number of residents having attained that age is not less than 10% of the total number of the number of residents under that age but over 15 years is met. This share was 23.8% in 20189*.

The life expectancy of older persons has showed an increasing trend over the last three decades. In 20189, the life expectancy at the age of 67 was 18.0830 years for women (17.27 49years at the age of 68) and 14.79 92 years for men (14.14 26 years at the age of 68).**

Life expectancy in good health at the age of 65 years (HLY indicator) reached 8.51 years for women and 7.68.1 years for men, according to the latest available data of 20178.***.

In 2018the 4th quarter of 2019, the unemployment rate was at a very low level of 2.02% in the Czech Republic; in the age group of people over 65 years, the unemployment rate was 0.96%. ****

*(Source: Czech Statistical Office 202019: Age Structure of Population 20198).

**(Source: Czech Statistical Office, 201822020: Life Tables for the Czech Republic).

***(Source: Eurostat, 202019: Healthy life years and life expectancy at the age of 65 by sex)

**** (Source: Czech Statistical Office, 202019: Labour Force Survey).

Report 2016:

Retirement age and its gradual increase are determined by the Pension Insurance Act. It increases by two months per year for men and by four, respectively six months per year for women until reaching uniform age limit of 67 for men and women. After this unification, the increasing of retirement age will continue by two months for each year. In 2016, the retirement age of men was 63 years, of childless women 62 years and four months, of women who raised one child it was 61 years and four months, of women who raised two children it was 60 years and four months, of women who raised three and four children the age was 59 years and four months and of women who raised five and more children it was 58 years and four months.

A beneficiary of an old-age pension who has already reached retirement age can be gainfully active. Payment of old-age pension is not stopped or reduced in concurrence with a gainful activity the old-age pension is not reduced as well. On the contrary, such an old-age pensioner may request a pension increase of 0.4% of the calculation basis after having worked for every 360 calendar days.

Report 2017:

Retirement age and its gradual increase are determined by the Pension Insurance Act. It increases by two months per year for men and by four, respectively six months per year for women until reaching uniform age limit of 67 for men and women. After this unification, the increasing of retirement age will continue by two months for each year. In 2017, the retirement age of men was 63 years and two months, of childless women 62 years and eight months, of women who raised one child it was 61 years and eight months, of women who raised two children it was 60 years and eight months, of women who raised three and four children the age was 59 years and eight months and of women who raised five and more children it was 58 years and eight months.

An amendment to the Pension Insurance Act[20] is currently in the legislative process. The amendment abolishes existing unlimited raise of retirement age and fixes it at 65 years of age for both women and men. It further introduces the retirement age review in five-year intervals on the ground of a report submitted by Ministry of Labour and Social Affairs to Government. This report will be based on the Czech Statistical Office's demographic forecast and will also include information on the retirement age so that an average pensioner can spend a quarter of his/her average life in retirement.

According to the new amendment (Act No. 203/2017 Coll., amending Act No. 155/1955, Pension Insurance Act, effective from 18 August 2017) mentioned above the retirement age for persons who completed longer contribution period of at least 30 years of contributions (only the period of employment without any non-contributory periods) or 35 years of contributions will gradually increase to 65 years of age for both sexes.

Report 2016:

For the retirement age which is 5 years higher than the retirement age set for men with the same birth date, the requirement that the number of residents having attained that age is not less than 10 % of the total number of the number of residents under that age but over 15 years is met. This share was 20.5 % in 2015. According to the latest available data of 2014, life expectancy in good health reached at the age of 65 years (HLY indicator) 9.3 years for women and 8.5 years for men. Shares of years lived in good health after the age of 65 years (47 % of women and 53 % for men), the Czech Republic is above the EU average and above this indicator for some countries (e.g. Italy, Finland, France, Germany and Greece) that have set the retirement age higher than 65 years. HLY indicator is not monitored in division by groups of ISCO. In 2015, there were about 5 % of the unemployed economically active persons in the Czech Republic; in the age group over 65 years, the unemployment rate was only 1.1 %. The unemployment rate in the age group over 65 years is not published in division by groups of ISCO due to low sample rate and the low statistical reliability.

Report 2017:

For the retirement age which is 5 years higher than the retirement age set for men with the same birth date (68 years and 2 months in 2017), the requirement that the number of residents having attained that age is not less than 10 % of the total number of the number of residents under that age but over 15 years is met. This share was 21.0 % in 2016 (Source: Czech Statistical Office 2017: Age Structure of Population2016). Life expectancy at the age of 68 years increased from 16.82 in 2015 to 17.51 in 2016 for women and from 14.05 to 14.30 years for men (Source: Czech Statistical Office, 2016 and 2017: Life Tables for the Czech Republic). Life expectancy in good health at the age of 65 years (HLY indicator) reached 8.6 years for women and 8.0 years for men, according to the latest available data of 2015 (Source: Eurostat, 2017: Healthy life years and life expectancy at the age of 65 by sex). HLY indicator is not monitored in division by groups of ISCO. In 4th quarter of 2016, there were about 3.6 % of the unemployed economically active persons in the Czech Republic; in the age group of people over 65 years, the unemployment rate was only 1.1 % (Source: Czech Statistical Office, 2017: Labour Force Survey).

Report 2016-ECSS:

Part V (Old-age benefit, Article 26(2). Pension age.

Taking into account the unification of the retirement age for both sexes, the Committee asks the Government to specify what retirement age is fixed for men who have raised the same number of children and what other factors are taken into account in setting lower age of retirement for particular categories of workers. Please indicate the time schedule for the progressive increase of the retirement ages for men and women up to 67 years.

2. Part V. (Old-age benefit, Article 26(2). Pension age.

Taking into account the unification of the retirement age for both sexes, the Committee asks the Government to specify what retirement age is fixed for men who have raised the same number of children and what other factors are taken into account in setting lower age of retirement for particular categories of workers. Please indicate the time schedule for the progressive increase of the retirement ages for men and women up to 67 years.

Retirement age is determined by year of birth and by gender, while the retirement age for men is not differentiated according to the number of children raised. The Czech Republic is aware of the fact that lower retirement age for women and its differentiation according to the number of children raised does not correspond to the principles of equality between men and women in social security, therefore there is a gradual consolidation of retirement ages for men and women and the gradual elimination of differentiation according to the number of children raised. After the unification of the retirement age to 67 years for men and women, its increase will continue by 2 months for each year of birth. The gradual increase of the retirement age for men and women born between 1936–1977until the age of 67 is noted below in the attached table.

Overview of increasing the retirement age for the insured born between the years 1936–1977

Year of birth

 Retirement age

men

Women with the number of raised children

0

1

2

5 and more

3 to 4

1936

60y + 2m

   57y

   56y

   55y

   54y

   53y

1937

60y + 4m

   57y

   56y

   55y

   54y

   53y

1938

60y + 6m

   57y

   56y

   55y

   54y

   53y

1939

60y + 8m

57y + 4m

   56y

   55y

   54y

   53y

1940

60y + 10m

57y + 8m

56y+4m

   55y

   54y

   53y

1941

61y

   58y

56y+8m

55y+4m

   54y

   53y

1942

61y+2m

58y+4m

   57y

55y+8m

54y+4m

   53y

1943

61y+4m

58y+8m

57y+4m

   56y

54y+8m

53y+4m

1944

61y+6m

   59y

57y+8m

56y+4m

   55y

53y+8m

1945

61y+8m

59y+4m

   58y

56y+8m

55y+4m

   54y

1946

61y+10m

59y+8m

58y+4m

   57y

55y+8m

54y+4m

1947

62y

   60y

58y+8m

57y+4m

   56y

54y+8m

1948

62y+2m

60y+4m

   59y

57y+8m

56y+4m

   55y

1949

62y+4m

60y+8m

59y+4m

58y

56y+8m

55y+4m

1950

62y+6m

   61y

59y+8m

58y+4m

   57y

55y+8m

1951

62y+8m

61y+4m

60y

58y+8m

57y+4m

   56y

1952

62y+10m

61y+8m

60y+4m

59y

57y+8m

56y+4m

1953

63y

   62y

60y+8m

59y+4m

   58y

56y+8m

1954

63y+2m

62y+4m

61y

59y+8m

58y+4m

57y

1955

63y+4m

62y+8m

61y+4m

60y

58y+8m

57y+4m

1956

63y+6m

63y+2m

61y+8m

60y+4m

   59y

57y+8m

1957

63y+8m

63y+8m

62y+2m

60y+8m

59y+4m

58y

1958

63y+10m

63y+10m

62y+8m

61y+2m

59y+8m

58y+4m

1959

64r

   64y

63y+2m

61y+8m

60y+2m

58y+8m

1960

64y+2m

64y+2m

63y+8m

62y+2m

60y+8m

59y+2m

1961

64y+4m

64y+4m

64y+2m

62y+8m

61y+2m

59y+8m

1962

64y+6m

64y+6m

64y+6m

63y+2m

61y+8m

60y+2m

1963

64y+8m

64y+8m

64y+8m

63y+8m

62y+2m

60y+8m

1964

64y+10m

64y+10m

64y+10m

64y+2m

62y+8m

61y+2m

1965

65y

   65y

   65y

64y+8m

63+2m

61y+8m

1966

65y+2m

65y+2m

65y+2m

65y+2m

63y+8m

62y+2m

1967

65y+4m

65y+4m

65y+4m

65y+4m

64y+2m

62y+8m

1968

65y+6m

65y+6m

65y+6m

65y+6m

64y+8m

63y+2m

1969

65y+8m

65y+8m

65y+8m

65y+8m

65y+2m

63y+8m

1970

65y+10m

65y+10m

65y+10m

65y+10m

65y+8m

64y+2m

1971

66y

   66y

   66y

   66y

   66y

64y+8m

1972

66y+2m

66y+2m

66y+2m

66y+2m

66y+2m

65y+2m

1973

66y+4m

66y+4m

66y+4m

66y+4m

66y+4m

65y+8m

1974

66y+6m

66y+6m

66y+6m

66y+6m

66y+6m

66y+2m

1975

66y+8m

66y+8m

66y+8m

66y+8m

66y+8m

66y+8m

1976

66y+10m

66y+10m

66y+10m

66y+10m

66y+10m

66y+10m

1977

67y

   67y

   67y

   67y

   67y

   67y

Note:  y – year; m – month

Discussion on lower pension age in arduous or unhealthy occupations.

In connection with the raising of the retirement age the CMKOS recalls that the Czech legislation does not contain provisions required by Article 15(3) of the Convention, according to which "If the prescribed age is 65 years or higher, the age shall be lowered, under prescribed conditions, in respect of persons who have been engaged in occupations that are deemed by national legislation, for the purpose of old-age benefit, to be arduous or unhealthy.

Regarding the determination of lower retirement age for certain categories of workers, the professions were in the Czech Republic (more precisely in the former Czechoslovakia) classified in different categories until 31 December 1992. Entitlement to an old-age benefit in lower age than the general retirement age resulted from number of factors (type of employment, the total period of employment or specific reason of termination of employment). Partial entitlements attained before that date "are decreasing as the citizens in question gradually attain the set reduced retirement age.  

An entitlement to a lower retirement age after 31 December 1992 covers only miners with a permanent workplace in underground mines; it is conditioned by the fact that those entered into such an employment before 1 January 1993, and they have worked off the number of shifts worked differentiated by a type of mineral, or by achieving the maximum allowable exposure. In the Regulation No. 363/2009 Coll., Regulating the Decrease of the Retirement Age for Persons Performing the Profession of Mining Underground is adjusted in this way: 5 years are deducted from the general retirement age in accordance with Section 32 of the Pension Insurance Act. Under the approved amendment to the Pension Insurance Act with effect from 1 October 2016, the retirement age of 7 years less than the general retirement age is established for persons working in the mining industry in selected occupations who have a permanent work in underground mines, regardless the period when they had entered into this profession for the first time before the effective date of the amendment. For any other categories of workers, a lower retirement age is not set.

Report 2012-С128

Concerning Article 15(3) of the Convention, the Government believes that such any obligation is in practice conditioned upon the existence of a specific category of “occupations that are deemed by national legislation, for the purpose of old-age benefit, to be arduous or unhealthy”. As no occupation is deemed as such by the Czech legislation currently in force, there is nobody who might benefit from lowering the retirement age and there is subsequently no reason to lower it. Nevertheless, the Government in this connection asks for the clarification of Article 15(3) vis-a-vis the two possible interpretations outlined above in order to ascertain its compliance with the Convention.

Discussion on the sustainability of the pension system

Report 2012-С128

Prior to being sent to the International Labour Office the draft report (Report on the C128 from the period from 31 August 2011 to 31 August 2012) had been discussed with the Czech-Moravian Confederation of Trade Unions, the Association of Independent Trade Unions, the Confederation of Employers’ and Entrepreneurs’Unions, the Confederation of Industry and Transport and the Czech Confederation of Commerce and Tourism as the most representative organisations of employers and employees. Comments from the Confederation of Industry were incorporated into the final text of the Report; also, following comments have been received from the Czech-Moravian Confederation of Trade 'Unions:

The Government has implemented fundamental reforms in the area of pension insurance, which result in increase of the retirement age with no time limit, reduction of benefit levels and threat to the long-term financial sustainability of the solidarity pension system (PAYG). This happens in particular by introducing private pension savings with effect from 1 January 2013, which will be financed by transferring the portion of the premium from the PAYG pension insurance, which has to be compensated by the increase of value added tax and by the increase of the national debts. Since the current data demonstrate a significant decrease in the collection of value added tax compared to projections published by the Government during the last tax increase this last year, it can be expected that the Government will make further parametric adjustments in PAYG system and will reduce indexation of pensions, which will cause a further decrease in the replacement ratio of the old-age, invalidity and survivors’ benefits, and subsequently the criteria of the Convention for the level of pensions will not be met.

These comments were discussed at the session of the tripartite Working Team of the Council of Economic and Social Agreement for the Co-operation with the ILO on 22 August 2012. In response, the Government notes that the CMKOS position on the future of the pension systems is speculative and that the available data do not confirm the allegations of threat to the long-term financial sustainability of the statutory pension system and of reduced benefit levels (see also the information provided below). The report covers the period up to 31 August 2012 and the pension-income ratios have been met during the period. The Government also rejects the speculations on the possible Government measures to be taken in the future as it is pointless to discuss issues that have not been decided yet.

In response to the request concerning the addition of the parameters of the Czech pension system and its changes, the Government refers to the Report submitted in 2012 on the application of Convention no. 128 as no further projections were made since then and all changes undertaken since then have been based on the data provided in that report.  

Report 2019

The complex “Report on the state of the Czech pension system and its expected development with regard to the demographic situation of the Czech Republic and the expected population and economic development” is currently under preparation and it is expected to be submitted by Ministry of Labour and Social Affairs to the Government in June 2019 (in accordance with Act No. 155/1995 Coll., Pension Insurance Act, as amended by Act No. 203/2017 Coll.).was published in 2019 and is available at https://www.mpsv.cz/web/cz/statisticke-informace-projekce-a-pojistnematematicke-zpravy-o-socialnim-pojisteni.

Reply to Comments by the Committee of Experts – Report 2012-С128: Insurance period- see above, under Article 18

Sustainability - establishment of the pension savings scheme

The establishment of the pension savings scheme, which will be based on the transfer of a portion of pension insurance contributions in the amount of 3 % of the rate applicable to persons who voluntarily decide accordingly to individual pension funds managed by pension companies, will lead to transformation deficits. The immediate impact on income will not be counterbalanced by expenditure until a certain period of time passes, i.e. until those who have entered the new scheme start to retire.

Being aware of the creation and long-term nature of the transformation deficits, the reform also includes an income increase by a portion of VAT revenue. Even in the case of decrease in the collection of value added taxcompared to projections as noted by the CMKOS) there is fixed percentage of the VAT revenues determined by law which will be in any case allocated for the pension reform transition costs.

The analysis conducted (see the graph below) shows that the establishment of the pension savings arrangement does not put at risk the long-term financial sustainability of the primary pension insurance at all. Only in the initial period, the balance will deteriorate slightly, but only within 0.2 % of GDP, and after approximately 2030, the balance will be better than it would be if the current system were preserved.

Last but not least, it is necessary to point out that the entire system of primary pension insurance (PAYG) is an integral part of the state budget, and this means that the benefit payments are guaranteed directly by the state budget, without directly depending on the difference between expenditure on the benefits and income from contributions or other particular income.

Additional information on pension savings scheme

The percentage rate of the calculation basis for each complete year of insurance is during the time of participation in I and II pension pillars simultaneously just 1.2 %. Since the pillar II (pension savings) was abolished with effect since 1 January 2016 (Act No. 376/2015 Coll., regulating the Termination of Pension Savings), the simultaneous participation in the I and II pillars relates only to the years 2013–2015. Former participants of pillar II will have the possibility of paying the rest of reduced premiums paid in those years to pillar I additionally, Those participants paid reduced premium to a compulsory pension insurance (I. pillar) at the time of participation in pension savings (II pillar), i.e. instead of 6.5 % only 3.5 %, and the difference (3 %) was transferred to their private account into II pillar.  If they pay the difference, the percentage rate of old-age pension will be in their case for each completed year of the participation in both pillars 1.5 % of the calculation basis. Financial means accumulated in pillar II will be paid to them until 31 December 2016 at the latest, until 29 December 2017 they will have an option to pay premiums in pillar I.

Report 2012-С128, Annex 2:

Demographic outlook

The demographic ageing of the Czech Republic’s population is a clear fact. Although one of the contributing factors is the decline in women’s fertility, notably in the 1993, the main contributor to the ageing population is the extension of the life expectancy. The ageing population is a phenomenon that is already evident and will persist in the years to come.

Social policy is responsible for reacting, in advance, to the anticipated future development. Its objective is the stabilisation of key factors to prevent a future collapse of social security systems in relation to the ageing population, inter alia of the pension system. Also, the social policy should not be overly restrictive in order to avoid injustice between generations.

The increasing of the retirement age to more than 65 years at the rate of 2 months for each year of birth is a measure that will stabilise the situation but fails to push the key quantities below their initial levels.

Proportion of people above the retirement age (RA) to the population (aged 20 to RA)

The first graph clearly shows that the increasing of the retirement age will provide the long-term stabilisation of the proportion of people above the retirement age limit to the population in the economically active age from 20 years to the retirement age. Without increasing the retirement age, this proportion would double within the next 50 years, while the legislation adopted will lead to only half that increase in the most critical years.

Likewise, the position of pension recipients will not deteriorate. The mean time of receiving a pension, i.e. the average time for which a pension will be received, remains basically stabilised at 20-21 years.

This is again shown in the following table, which also demonstrates that the number of people to be still alive at the age of retirement will not decrease either. Just as in the past, approximately 81% of all men who attain the age of 20 (and thus will most likely be actively confronted with the pension system) will still be alive at the age of retirement. The situation of women is similar but the percentage of women who will still be alive at the age of retirement is approximately 10% higher.