Czech state to cover full wages for employees of companies closed due to anti-COVID-19 measures

According to Deputy PM Karel Havlíček, the Czech Republic will compensate companies that have closed due to the new measures for their employees

ČTK

Written by ČTK
Published on 21.10.2020 15:59 (updated on 21.10.2020)

Prague, Oct 21 (CTK) - The Czech state will cover the full wages of employees, including their insurance fees, for firms that have to close over the new anti-COVID-19 measures, Deputy PM Karel Havlíček (for ANO) told media today.

The announcement came during the press conference following today's cabinet meeting that decided on the closure of retail stores and services with some exceptions.

The money will go to the firms from the Czech Antivirus A program. Last week, the cabinet decided to cover full employee wages of up to 50,000 crowns a month until the end of the year.

Additionally, Antivirus B offers compensation worth 60 percent of wages, up to 29,000 crowns per employee, for companies that have not been forced to close, but which have had to reduce their production or services due to a shortage of supplies from closed facilities or due to declining market demand.

This subsidy will be provided until the end of October for the time being, but Havlíček said the cabinet will discuss its further extension into November on Monday.

Previously, trade unions and employers repeatedly demanded that the state extend both the Antivirus A and B programs until the end of the year.

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The cabinet originally wanted the situation to be taken care of through a new kurzarbeit law as of November, but the government-proposed kurzarbeit bill has been criticized by both unions and employers. They believe the bill will be profoundly modified during the ongoing lower house debate; modifications have also been acknowledged by Finance Minister Alena Schillerová (for ANO).