Families in Czechia to receive a one-time payment of CZK 5,000

The Czech government on Wednesday passed a package of measures aimed at helping working families impacted by the steep cost of living hikes as well as supporting better work-life balance.

Households with an annual income under CZK 1 million will receive a one-off contribution of CZK 5,000 per child, Prime Minister Petr Fiala said at a press conference yesterday. Households entitled to the contribution should receive it by August at the latest.

Fiala tweeted that the one-time allowance, given for each child under 18, is designed to help families cope with rising food and energy prices triggered by the impact of the Russian invasion of Ukraine.

"These are concrete and targeted measures that will be felt by all families affected by the effects of Putin's war in Ukraine and rising prices," the PM said on Twitter. 

The amendment must still be approved by both Senate and Chamber of Deputies. The one-off contribution for households would cost the government about CZK 10.5 billion.

PM Fiala also added that the cabinet would increase the parental allowance benefit from CZK 10,000 to CZK 13,000 and vows to create more flexible and part-time work opportunities and daycare options for parents of preschool-aged children (dětské skupiny).

Special subsidies, up to CZK 7.1 billion, could already be allocated this year for "children's groups," and would come from the European money for the National Recovery Plan and operational programs. More part-time jobs would be created via tax breaks for employers. Amendments for these benefits will also be prepared.

Labor and Social Affairs Minister Marian Jurečka said the government would like to pay the contributions as soon as possible so that households can better cover the costs associated with children returning to school.

It isn't clear yet whether families will be paid automatically or the benefit will need to be applied for but Jurečka said the government is fine-tuning the process and that it should all be done electronically. Benefits will be paid by employment offices.

Fiala said the government prefers targeted support for lower-income families and single parents as opposed to blanket support. "It isn't possible for the state finances to support everybody...We would only accelerate inflation," he said, adding that the allowance gives these groups a chance to cope with the situation better.