The amendment was proposed by Minister of Labor and Social Affairs and Finance Jana Maláčová (CSSD) and Alena Schillerová (ANO); the newly proposed allowance will cost the government more than 7 billion CZK a year.
The primary reason for the boost in benefits? The state hasn’t increased its payout to new parents for more than a decade. The government is expected to approve the increase in parental allowance by the end of the year.
Parental allowance now stands at 220,000 CZK; 330,000 CZK for twins and multiples.
Parents, who receive 70 percent of their base salary, can decide on how the funds are disbursed over a period of four years.
As of February 2018, the new paternity leave entitlement for fathers has come into effect in the Czech Republic. The new seven-day entitlement, which allows fathers to claim up to 70% of their salary, is intended to encourage father’s early involvement in caring for young children.
According to data from the Ministry of Labor and Social Affairs, about 285,000 people receive a parental allowance today. More than half of them choose between 6,000 and 7,600 CZK per month.