Housing allowance. How to calculate and how to apply?

What is housing benefit for

Housing benefit is one of the state social assistance benefits. It is granted to people with low incomes and high housing costs, provided they meet certain conditions. Its aim is therefore to help people meet this basic necessity of life, to mitigate the negative impact of housing on their budget, or to reduce the risk of people not being able to afford housing at all and ending up on the streets.

Housing benefit is often confused with housing benefit, but these are two different benefits. Housing benefit is one of the benefits of aid for material need and is calculated in such a way that the household is left with a certain amount of money for living expenses (food purchases, etc.). Unlike housing benefit, it is not necessary to have permanent residence in the place of residence. It is therefore also granted, for example, to people living in a hostel.

Conditions for housing benefit

The following may be eligible for housing benefit:

• The owner of the dwelling: in addition to the owner himself, this includes the spouse of the owner of the dwelling who has a right to housing derived from the ownership of the other spouse.
• Person using the dwelling under an easement – Persons who have the right to use the dwelling under an established easement.
• Tenant and subtenant of a dwelling – Persons who occupy a dwelling under a lease or sublease are also entitled. This includes spouses with a joint tenancy.
• Owner of a building for individual or family recreation: This applies to persons who own a flat or holiday home which is used for permanent living purposes. However, this structure must be a self-contained locked space, have at least one living room, unrestricted access to potable water and a toilet.

These persons must then meet two basic conditions:

1. Housing costs exceeding 30% of the family’s qualifying income: Housing costs must exceed 30% (35% for Prague) of the family’s net income.
2. The required 30% of the family’s qualifying income must not be higher than a specified amount of the qualifying housing costs.

In order to understand these conditions, it is first necessary to explain the terms:

What is included in the housing costs?

Housing costs include the expenses that a household incurs in order to use the dwelling. These costs are broken down according to the type of housing and include the services associated with its use:

For rented dwellings, this includes the rent according to the rental or sub-rental contract. In the case of cooperative flats, owner-occupied flats and flats used under an easement, comparable costs are determined uniformly. For the year 2024, the monthly amounts are the comparable costs:

• One or two persons in an apartment: CZK 3 571.
• Three persons: CZK 4 669.
• Four or more persons: CZK 5 632.

Costs associated with the normal use of the apartment

This includes gas, electricity, heat (e.g. district heating) and hot water supply, drinking water supply from taps and sewage disposal, municipal waste removal and cleaning of sumps, operation and lighting of common areas (e.g. lift, corridors), cleaning of common areas and charges for common TV and radio antenna.

The costs for solid fuels (for houses without central heating) are set at a flat rate and for 2024 are:

• One or two persons in a flat: CZK 1 843.
• Three persons.
• Four or more persons: CZK 2 979.

Housing costs are calculated as an average for the previous calendar quarter. Advances paid during this period are included. If additional payments for a longer period of time were made during this period, they are also included. Conversely, if an overpayment has been repaid during the quarter, the total housing costs for the period will be reduced by that amount.

If the applicants have not lived in the dwelling in the previous quarter, then 80 % of the standard housing costs for each month the dwelling was not occupied will be included. The exception is where persons have lived in another flat where they have received housing benefit, in which case the actual cost of the original flat will be counted.

What is qualifying income?

The qualifying income is the sum of the net incomes of all the people who are assessed together for the purposes of claiming housing benefit. The whole family living together in the dwelling is considered together.

The qualifying income includes all income of the family from employment under a contract of employment, employment contract or agreement to perform work (except for dependent children), income from self-employment, rental income, social benefits and other support (e.g. parental allowance, sickness benefit, unemployment benefit, etc.), income from abroad of a similar nature and other less usual income (e.g. remuneration for foster carer’s activities).

What are normative housing costs?

Normative housing costs represent the average cost of housing in the Czech Republic. Normative costs include the average cost of rent or comparable costs (for cooperative, owner-occupied and housing under an easement) and the cost of utilities and services. They are further broken down by municipality size, number of dwelling occupants and type of housing. For 2024, they are set as follows:

Rental and sublet housing:

Cooperative, owner-occupied and housing under easement:

Calculation of the housing allowance

The amount of the housing allowance is calculated according to a formula that takes into account the average housing costs for the reference period (the preceding calendar quarter), the reference family income and a coefficient of 0.30.

Calculation formula:

• Normative costs – (family income × 0.30) = amount of the allowance (to be used if the normative costs are lower than the actual costs).
• Actual costs – (family income × 0.30) = amount of the allowance (to be used if actual costs are lower than normative costs).

Example calculation:

A married couple live in a rented flat in a municipality with a population of up to 69 999. Their costs are:

• Normative cost: CZK 13 737.
• Actual cost: CZK 14 500.
• Family income: CZK 30 000 per month.

Calculation:

Family income × 0,30 = 30 000 × 0,30 = 9 000 CZK.

Normative cost – (income × 0,30) = 13 737 – 9 000 = 4 737 CZK.

= Actual costs are higher than normative costs, so normative costs are used.

The contribution is CZK 4 737 per month.

Housing allowance for pensioners

The housing allowance for senior citizens is decided in the same way as for a normal household. The income of all seniors living in the home is considered. Pensions, but also other allowances and benefits or earnings from employment, contract work or self-employment are included in the relevant income.

Housing allowance for self-employed persons

For the self-employed, the qualifying income is based on their net income for the previous tax year (i.e. for 2025 it will be based on the income for 2024). The income for the whole year is added up and then divided by 12 to give the average monthly income.

If the previous year’s income is missing, the minimum amount is based on 50% of the average wage in force at the time, i.e. CZK 20 100 (always set on the first of July). In the case of self-employed persons who have a flat-rate tax, the minimum amount of CZK 20 100 is always used.

The minimum amount should change to 100% of the average wage from 1 July 2025.

Application for housing benefit

You apply for housing benefit through the Job Centre. The process involves filling in a form, providing the necessary documents and submitting the application in person, online or by post. Housing benefit is payable only once per household, even if more than one person meets the conditions. Entitlement to the benefit starts on the date of application and the application can be made up to 3 months in arrears.

Where to apply for housing benefit?

There are several ways to apply:

• In person or at the office of the local Job Centre (depending on where you live).
• Online via the Jenda Client Zone.
• By post to the address of the relevant contact point.
• By e-mail signed with a guaranteed electronic signature.
• By mail to the mailbox of the relevant contact point.

Housing benefit – what to prove?

To apply for housing benefit, you must fill in a form which can be found on the website of the Ministry of Labour and Social Affairs or at the Labour Office. The form must also be accompanied by:

• Evidence of income and housing costs: all income of the entire household (see above) and all housing costs for the previous calendar quarter must be attached.
• Statement of persons who do not share the cost of their needs with the applicant: A form designed to list persons who live with you but do not share the household (e.g. a roommate who pays separately).
• Certificate of dependency for persons over 15 years of age: This will typically be a certificate of education.
• Proof of the right to use the apartment: For example, a lease agreement or an extract from the Land Registry.
• Confirmation of payment of rent and housing and utility costs: Confirmation of the amounts paid for rent and utilities and the latest utility bills including financial settlement (utility, water, heat etc.).

What must be observed?

You must follow certain rules to keep your housing benefit:

• Prove your income and housing costs regularly: this information must be provided for the 1st and 3rd quarters (by the end of April and October) or for the 2nd and 4th quarters (by the end of July and January).
• Report changes: Any changes that affect eligibility for the benefit (e.g., change in residence, income, or household composition) must be reported.
• Co-operate with the Job Centre: You must respond to the Job Centre’s requests, allow Job Centre staff to visit you, and provide other required documents where appropriate (e.g. bank statements).

Decision on housing benefit

Decisions on housing benefit are made through the Job Centre and involve several stages:

• Submission of the application: the procedure is initiated by submitting an application on a prescribed form. The application must be accompanied by all required documents (e.g. proof of income and housing costs). This means that you cannot be refused.
• Document check: the Job Centre will check that all the necessary documents have been submitted. If anything is missing, you will be asked to complete it. It is compulsory to cooperate with the Labour Office and failure to provide the documents may lead to rejection of the application.
• Eligibility assessment. Based on the calculation, the amount of the allowance is determined.
• Decision: A decision on entitlement to the allowance is issued, which also contains information on the possibility of appeal. If your claim is refused, you have the right to appeal.

How to appeal?

You can appeal within 15 days of receiving the decision not to grant housing benefit. This should be sent to the same Jobcentre that dealt with your claim. The latter will then forward the appeal to the MLSA, where it will be decided.

The appeal is not in a specific form, but it must contain the following information:

• Details of the appellant: Name and surname, permanent address and contact details (telephone, e-mail).
• The reference number of the decision against which the appeal is lodged.
• Specification of the scope of the appeal: State clearly that you are challenging the whole decision or specify which part you are challenging. (e.g. ‘I appeal against the decision of the Labour Office of the Czech Republic in its entirety’).
• Reasons for appeal: State why you disagree with the decision of the Labour Office. Describe how you think the Labour Office erred (e.g. incorrect assessment of income, housing costs, missing supporting documents, etc.).
• Legal inconsistency or procedural errors: Identify specific inconsistencies with the law (e.g. the Law on State Social Assistance) or errors in the procedure.
• Proposed solution: At the end, clearly state what decision you are requesting: (e.g. “I propose to annul the original decision and award the housing allowance in accordance with the documentary evidence.”)

Payment of housing benefit

The housing benefit is paid monthly, no later than the end of the calendar month following the month for which the benefit is due (for example, the January benefit will be paid by the end of February).

If the housing allowance is less than CZK 100 per month, it is paid quarterly, by the end of the month following the end of the calendar quarter (for example, the allowance for January, February and March will be paid by the end of April).

Housing and relocation allowance

If you are already receiving the allowance, you can continue to receive it, and it will be calculated according to the cost of your previous home for the last calendar quarter. If you haven’t had the allowance before, you will need to reapply when you move. The Jobcentre will use 80% of the standard housing costs to calculate this.

Summary

Housing benefit is a state social assistance benefit that helps people on low incomes to meet the high cost of housing. Owners, tenants, sub-tenants or users of a dwelling under an easement are eligible if their housing costs exceed 30% of their net household income and do not exceed the standard costs set by the government.

The application must be accompanied by the previous quarter’s income and housing costs, a lease or proof of ownership, the most recent utility bill and proof of dependency of children over 15. The application can be submitted in person at the Job Centre, online, by data box, by post or by email.

The allowance is calculated as the difference between the normative (or actual) costs and 30% of household income. It is paid monthly, no later than the end of the following month. If the allowance is less than CZK 100 per month, it is paid quarterly.

Beneficiaries must provide regular proof of income and housing costs and report changes that may affect entitlement to the benefit. A new application must be made when moving. If you disagree with the decision not to grant the benefit, you can appeal within 15 days.