President Pavel signs law expanding sick pay for self-employed in Czechia

Starting next year, self-employed individuals and workers with health insurance agreements will be eligible for sick pay. This is part of an amendment to the health insurance law, signed by President Petr Pavel on Monday. In addition to sick pay, the amendment requires authorities to electronically process maternity, paternity, and regular and long-term sick benefits.

Under the new law, self-employed people, contract workers, and those with small-scale employment will qualify for sick pay. However, they must have paid sick pay contributions for at least three months. If a self-employed person was previously employed and registered to pay contributions within eight days of leaving their job, they would qualify with a shorter contribution period.

Since 2020, electronic sick leave certificates have been used in the Czech Republic. The new amendment extends this system to other benefits, including maternity, regular and long-term sick pay, and pregnancy, maternity, and paternity allowances.

When a doctor approves maternity or nursing leave, they will send a confirmation to the social administration. Hygienists will do the same for nursing allowances related to quarantine or school closures. Employers will report paternity and other employee events. Self-employed individuals will apply for these benefits electronically.

The amendment also raises the threshold for writing off debts on insurance premiums and penalties to CZK 300, up from CZK 100. Starting in 2025, it also shortens the statute of limitations for outstanding premiums from ten years to six. A new integrated information system will connect departmental offices.

Introducing nursing allowances for self-employed individuals and contract workers is expected to increase cases by about 2.5 percent. The cost of the new benefit is estimated to rise by approximately CZK 29 million.