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Wage compensation



The wage compensation is regulated in the Labor Code. The most important areas related to the wage compensation are:

Quarantine ordered to an employee and the so-called "Izolačka" (isolation benefit)

Employees, who have been quarantined, are entitled to a wage compensation of 60% of their reduced average earnings during the first 14 days. From the 15th calendar day, the sickness insurance benefit starts, paid by the employee's local District Social Security Administration. As a further incentive for the employees, a special benefit that goes above the Labor Code regulations - the "Izolačka"- has been created, a extraordinary benefit amounting up to CZK 370 a day of quarantine/isolation additionally to the wage compensation. Its main purpose is preventing the virus spread among employees and (as early as possible) eliminating an income fall.

All information on the "Izolačka" benefit can be found on this Ministry of Labour and Social Affairs web page (in Czech only).

Temporary incapacity for work

An employee who has been by his employer declared temporarily incapable for work due to sickness is entitled to get 60% of his/her salary or wage as compensation during the first 14 days of his/her sickness. From the 15th calendar day, the sickness insurance benefit starts, paid by the employee's local District Social Security Administration.

Forced closure of an establishment in connection with the measures taken by the public authorities

This situation typically applies to cases when the employer has to reduce or close down operations according to the announced measures. In such a case, the employer is obliged to pay employees 100% of the average earnings.

The absence of a substantial part of employees in the workplace

If a significant proportion of the employees is absent from work as a result of measures related to the coronavirus pandemic (e.g. employees from abroad cannot get to work), and the employer is unable to assign work to them, employees are entitled to 100% of their average earnings.

Downtime

Downtime is when the employer cannot assign work to employees due to a temporary defect or other operational causes which are not caused by the employer. Typically, this may be a reduction in the supplies of materials due to the crisis. In this case, the employee is entitled to a salary of at least 80% of his/her average earnings.

Partial unemployment

If the employer is unable to assign work due to a temporary restriction of the sales of their products or a reduction in the demand for the services they provide (which are a result of Covid-19), the employee is entitled to a wage compensation of 100%. Unless otherwise agreed in an internal regulation or an agreement with a trade union, wage compensation can be at least 60% of average earnings.

 

If you have an acute legal problem, you can contact the free telephone consultation on this website

Frequent questions about this topic

If my employer’s company is closed due to emergency measures, how much will I get paid?
When am I entitled to time off and nursing leave?
If the employer does not have a job for me, because there are no contracts, how much do I get?