Unemployed with originally higher income will increase from January

The maximum amounts of unemployment and retraining support will increase from January 1. Their amount depends on several factors, not only on income from the last job. How and why does support gradually decrease over time?

Eligibility for support

First of all, let's recall the basic conditions for entitlement to unemployment support: An unemployed person who has lost his job or closed his business, or a job seeker who:

Watch out for long-service allowance

Just like a recipient of an old-age pension, an applicant who is entitled to a long-service allowance and this allowance is higher than the unemployment allowance he would be entitled to if he was not entitled to a service allowance.

In the case of a job seeker who is entitled to long-service allowance and at the same time is entitled to unemployment support (so what is stated in the previous sentence does not apply to him), the amount of unemployment support is determined as the difference between standard unemployment support and long-service support contribution.

Period of employment or business can be replaced

If the condition of having completed at least 12 months of pension-insured gainful activity in a previous job (or independent gainful activity) is not met in order to be entitled to unemployment support, this condition can be also be fulfilled by taking into account the replacement time for employment, which can be, for example, caring for a child under the age of 4 and other times specified in § 41, paragraph 3 of the Employment Act.

Support for retraining is usually higher than that for unemployment, which can decrease

A job seeker who participates in retraining provided by the regional branch of the Labor Office (ÚP) is entitled to support for retraining and as of , to whom retraining support is to be granted, is not a recipient of an old-age pension.

How long you can receive support: it depends on your age

Unemployment support is paid to a job seeker who meets the conditions for entitlement to it for a support period that lasts a maximum of:

Determining the length of the support period is the age of the job seeker reached on the date of submitting the application for unemployment support.

Amount of support

The amount of unemployment support is affected not only by previous earnings, but also by the form of termination of employment. That is, whether it was a unilateral or bilateral legal action, i.e. a termination in the first case, or an agreement in the second case.

Furthermore, the reason for terminating the employment relationship of the job seeker plays a role (whether it was serious, if the employee terminated it, or it was a particularly gross violation of work discipline, for which the employer terminated it).

Depending on this, support is granted in a standard or reduced amount, or the job seeker is not entitled to it at all. Its amount for job seekers who achieved a higher income is also affected by the time when they apply for it.

Different percentage rates for calculating the amount of unemployment benefit

Regular rate

The rate of unemployment benefit is:

Lower rate

Applies in case of termination of employment without a serious reason. However, a job seeker who, before being included in the register of job seekers without a serious reason (i.e. for reasons other than those listed in § 5 letter c) of the Employment Act, terminated his last job by himself or by agreement with the employer, is entitled to unemployment support only in the amount of 45% of the average monthly net earnings or assessment base.

The labor authorities, however, recognize as a serious reason for terminating the employment relationship by agreement also its termination for organizational or health reasons, even if they are not fully covered by the mentioned § 5 letter c) of the Act.

However, if the job seeker terminated several jobs by himself or by agreement on the same day, at least one of which was terminated for serious reasons, he is entitled to unemployment support for the first two months of the support period in the amount of 65%, the next two months of support period 50% and for the remaining support period 45% of the average monthly net earnings.

Zero support

Applies for violation of work discipline or the work regime of an incapacitated employee.

An applicant with whom an employment relationship was terminated by the employer in the last 6 months prior to being entered into the Ú register is not entitled to unemployment support due to a violation of an obligation arising from the legal regulations relating to the work performed by him in a particularly gross manner by its immediate cancellation pursuant to § 55 paragraph 1 letter b) of the Labor Code or notices pursuant to § 52 letter g) of the Labor Code.

A claim does not arise even for an applicant with whom, in the last 6 months prior to inclusion in the register of job applicants, the employment relationship was terminated by the employer due to a violation of another employee's duty pursuant to § 301a of the Labor Code in a particularly abusive manner, i.e. in the sense of § 52 letter g) of the Labor Code for non-compliance with the established regime of the insured person who is temporarily unable to work, as regards the obligation to remain at the place of residence during the period of incapacity for work and to observe the time and scope of permitted outings during the first 14 calendar days of the duration of the temporary incapacity for work.

Other differences in support for retraining and unemployment

For retraining, the percentage rate and the amount of support for training or studying for a new job remain the same. While unemployment benefit, the percentage rate decreases, although with high earnings the benefit may remain the same.

The percentage rate of support for retraining is 60% of the average net monthly earnings or assessment base. Retraining support is paid for the entire period of retraining.

If the job seeker quits multiple jobs or jobs and self-employment on the same day during the relevant period, which are the period of pension insurance, the amount of unemployment support and retraining support is determined from an amount equal to the sum of the average monthly net earnings or the sum of the average net monthly earnings(es) and the assessment base.

Maximum unemployment benefit

The maximum amount of unemployment benefit is 0.58 times the average wage in the national economy for the first to third quarter of the calendar year preceding the calendar year in which the application for unemployment benefit was submitted.

The average wage in the national economy for the 1st to 3rd quarter of 2021 was CZK 37,047 (announced by Ministry of Internal Affairs and Communications No. 495/2021 Coll.).

The maximum amount of unemployment support can thus reach up to CZK 21,488 per month, if the application for support was, or it will be submitted after December 31, 2021, i.e. in 2022. If the application for unemployment benefit was submitted before December 31, 2021, then its maximum possible amount is CZK 20,075 per month.

Maximum support during retraining

The maximum amount of support during retraining is 0.65 times the average wage in the national economy for the first to third quarter of the calendar year preceding the calendar year in which the job seeker started retraining.

The highest support for retraining starting in 2022 can thus reach up to CZK 24,081 per month.

If the job seeker started retraining in 2021, the maximum support for retraining is still CZK 22,498.

Examples

A 39-year-old well-paid worker who was laid off from his job and whose last average salary was CZK 44,000 net per month registered as an applicant (for a new job) at the labor office. As he is 39 years old, he can receive support for up to 5 months.

A 61-year-old lower-paid worker, whose last average earnings were CZK 20,000 net per month, registered at the labor office. As he is 61 years old, he can receive support for up to 11 months.