Who qualifies and when to expect payment? More details on Czechia's inflation subsidy

Last month the Czech government announced that certain families would be eligible for a one-off subsidy intended to help cope with the higher costs of living due to inflation.

A draft law presented by the Ministry of Labor Monday gives further details about when and how families living in Czechia can expect to receive financial support and who exactly qualifies as a "parent."

According to the finalized bill, the state should pay the contribution of CZK 5,000 for each child under age 18 on August 1 of this year. Parents who already receive child allowance benefits would receive the bonus automatically in August. 

Parents who don't normally collect state benefits but still qualify for support (that's those with an annual income last year of up to CZK 1 million gross) will have to apply for the subsidy electronically via an application or in person at CzechPoints. A bank identity will be required to apply via an online application (those who don't have one can also apply at CzechPoints or post offices).

The benefit can be collected by single parents, spouses, unmarried couples with children, adoptive parents, and foster parents. It also applies to parents of children born between August 2 and Dec. 31. Eligibility for employees will be determined on the basis of contributions and for self-employed and entrepreneurs from tax returns. The benefit will not be taxed.

Others who qualify as a parent include any person who has been entrusted to care for a child (replacing their parent), the spouse or registered partner of the parent, widow or widower of the parent, or the parent's parent or partner if they live with the child and the parent or person and reimburse their own expenses for at least three months immediately preceding the date of application for the allowance.

In the event of a further increase in prices, the government said it's possible that the one-off contribution could be repeated in the future.

"On the one hand, the contribution will immediately improve the income situation of families with children, but it will also create time and space for evaluating the real impacts of the energy crisis in particular on the income situation and living standards," the ministry said. 

According to statistics, around two million children under the age of 18 live in the Czech Republic. The ministry estimates that for a tenth of them parents will not apply for the allowance and the benefit will be paid to 1.82 million children. Expenditures should amount to CZK 9.1 billion. The preparation of the application and information system should cost about CZK 30 million.

Earlier this month the Czech government launched a website that brings together information about financial aid available to families with children, seniors, and other groups to help them cope with the recently rising prices. The new Umbrella Against High Costs website (Deštník proti drahotě), is designed to make people aware of the government's inflation measures and to tell applicants how to apply for benefits.