The government informed that the model of financial help kurzarbeit has been approved. The officially named program Antivirus, prepared by Ministry of Finance, states that the government will pay two types of wage allowances. Firstly, regarding people in quarantine and employees of closed establishments, 80% of their wages will be compensated up to 39 000 Czech crowns. And secondly, in the case of production cuts due to a shortage of workers, raw materials or a decline in demand, 60% of employees’ wages will be compensated up to 29 000 Czech crowns. The program will be launched on April 1^st and will be in effect until the end of April. During that time the government will pay wage allowances for the period from March 12^th to April 31^st.

There is also an intention to prepare financial help for those companies which, despite all difficulties, remain paying 100% of employees’ salaries, according to the Minister of Industry and Trade Karel Havlíček.

Minister of Labour and Social Affairs Jana Maláčová described the whole set of economic measures as follows: “The purpose of this program is to give entrepreneurs and companies a clear message that they do not need to give notice to any employees. We will help you, provided that you keep all your employees, and then, when the whole crisis is over, you can start where you had to stop.”

The change in self-employed allowance

The government also decided to reshape the financial help for self-employed persons who are affected by coronavirus restrictions. Originally, the state intended to pay 15 000 Czech crowns every month, but that was changed to one-time allowance of 25 000 Czech crowns. Those who want to apply for the financial help have to submit an affidavit and pass several conditions:

• An applicant must be a self-employed person in accordance with the the law regulating pension insurance (typically sole trader, independent farmer, author or artist, expert, interpreter, veterinarian, doctor, healthcare provider, architect, tax advisor, etc.).
• The business activity performed is primary activity.
• The activity performed may also be secondary activity, but only in cases when the self-employed person was entitled to disability pension, or was granted a retirement pension, or was entitled to parental allowance or maternity benefit, or cared for the necessary person. The exact list of these situations is defined in § 9 subsection b) or c) of the Pension Insurance Act.
• The self-employed person showed a decrease in gross sales by at least 10% compared to the January to March 2019 period. (In case that an entrepreneur started a business activity later than January 2019, the first three months of the start of the activity will be used for comparison with the latest possible period of December 2019 to February 2020).
• The applicant achieved gross revenues of at least 180 000 Czech crowns in 2019. In case he has not been in business for the whole year, then he achieved at least 15 000 Czech crowns per month when conversed.
• Fulfilling all those conditions must be accompanied by an affidavit.

Applications will be accepted by the administration via data box, by post, through filing offices and collection boxes placed in front of tax offices. The allowance for self-employed persons must be passed by Lower House of Parliament prior to the launch of this measure.