Skip to main content
EN

Czech Republic Expands Health Insurance Benefits for Workers

Starting next year, self-employed individuals and workers with health insurance agreements in the Czech Republic will become eligible for sick pay under an amendment to the health insurance law signed by President Petr Pavel on December 9th, 2024. The reform also mandates the electronic processing of benefits such as maternity, paternity, and both short-term and long-term sick leave, simplifying the system and increasing accessibility for all workers.

The Legal Framework: Act No. 187/2006

Act No. 187/2006 Coll. on Sickness Insurance forms the legal foundation of the Czech Republic’s social security system. It establishes the rules for insurance coverage and the provision of benefits to employees and, on a voluntary basis, to self-employed individuals. The new amendment builds upon this law, expanding access to benefits and introducing significant changes for self-employed workers and those with non-standard contracts.

Under the current law, employees with standard employment contracts are automatically insured through contributions deducted from their salaries by employers. This ensures access to benefits such as sick pay, maternity leave, paternity leave, and other forms of assistance.

In contrast, self-employed individuals must voluntarily register for insurance and regularly contribute based on their declared income, a cost that has historically limited their participation. Additionally, workers with non-standard contracts (such as Dohoda o provedení práce, DPP, and Dohoda o pracovní činnosti, DPC) have generally been excluded from benefits unless their income exceeds specific thresholds.

The New Provision: what changes?

The new amendment brings significant changes by making sick pay available to more workers and introducing technological upgrades:

1. Expanded Eligibility:

  • Self-employed individuals, contract workers, and those in small-scale employment will now qualify for sick pay after contributing for at least three months.
  • Self-employed persons transitioning from employment will benefit from a shortened contribution period if they register within eight days of leaving their job.

2. Enhanced Digital Processing:

  • The reform builds on the 2020 introduction of electronic sick leave certificates, extending the system to other benefits like maternity allowances, long-term sick pay, and pregnancy-related allowances.
  • Doctors will send confirmations for maternity or nursing leave directly to the social administration, ensuring a faster and more accurate system.
  • Employers will electronically report events such as paternity claims, while self-employed workers can apply for benefits via digital platforms.

3. Simplified Financial Regulations:

  • The threshold for writing off unpaid insurance premiums and penalties will increase from CZK 100 to CZK 300.
  • Starting in 2025, the statute of limitations for outstanding premiums will be reduced from ten years to six.

4. Introduction of Nursing Allowances:

  • For the first time, self-employed individuals and contract workers will qualify for nursing allowances, addressing a significant gap in the previous system. This expansion is expected to raise benefit claims by 2.5 percent, with an estimated additional annual cost of CZK 29 million.

Implications for Workers and the Economy

The amendment reflects a significant step toward inclusivity and modernization in the Czech Republic’s health insurance framework. By extending benefits to previously ineligible workers and embracing digital solutions, the government aims to provide greater support to its workforce while optimizing administrative processes.

Sources: https://www.expats.cz/czech-news/article/pavel-signs-law-expanding-sick-pay-for-self-employed

https://www.hrad.cz/cs/pro-media/tiskove-zpravy/aktualni-tiskove-zpravy/prezident-republiky-podepsal-zakony-18284#from-list

https://www.zakonyprolidi.cz/cs/2006-187?utm

Image generated by AI.

Leave a Reply

Call Now Button