Unemployment benefit – what are you entitled to?

JUDr. Ondřej Preuss, Ph.D.
29. December 2024
8 minutes of reading
8 minutes of reading
Labour law

The loss of a job puts a huge strain on our lives, not only psychologically, but also materially and financially. How should one proceed to reduce the impact of unemployment as much as possible, what is one entitled to in such a situation, and how much support should one expect in 2025?

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Register with the Job Centre

Don’t delay in registering with the Job Centre for several reasons. You will have the (justified) feeling that you are doing something and not just letting things go, you will increase your chances of finding a new job from day one, and most importantly: you will not be completely destitute.

Head to the job centre where you live, preferably within three days of your last job. Firstly, you will be registered in the job database from the first day you are unemployed and, more importantly, the state will pay for your health insurance.

Tip for article

We have detailed how to apply to the Job Centre and the conditions for receiving support in our article.

You may be entitled to severance pay from your former job and think that visiting the job centre is unnecessary if you have some money. If you’re not sure how much severance pay you should be paid, the severance pay calculator can help you by taking into account the relevant period for calculating severance pay under current legislation. Remember that even if you don’t get unemployment benefits during the severance pay period, the state pays for your health insurance.

You can also go to the Labour Office if you have been working under an IČO under a shvarcsystem and your cooperation with your “employer” has ended, or if your business as a sole trader has failed and you have closed it down. You will also be entitled to unemployment benefit, but you must of course stop or at least suspend your trade. Otherwise you will not get unemployment benefit.

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Who is eligible for support?

Only jobseekers are eligible. You are eligible if you apply in person to the regional employment office of the district in which you reside for suitable employment and you meet the conditions for inclusion in the register of jobseekers. In particular, you are not currently in any employment relationship. Any form of employment is a major obstacle to receiving support. The only exceptions to this are working or working for a housing association outside of an employment relationship or running a housing association.

However, there may be situations where you are registered as a jobseeker but for some reason you do not qualify for unemployment benefit for the reasons set out below (or lose it if you are long-term unemployed). In this case, you may be employed in a so-called non-colluding job. This is a job, or even a part-time job, where the wage does not exceed half the minimum wage. This is set at CZK 20,800 per month for 2025. This is a gross wage.

The performance of non-colluding employment must be notified to the employment office no later than the day of commencement. If you earn more than CZK 10,400 in a non-colluding job, you will be removed from the register. You will also be excluded if you are found to be working underground.

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Are you looking for flexible short-term work and wondering what legal form is suitable? An easy way to arrange such short-term work is to enter into one of two types of employment agreements. For example, a work performance agreement or a work activity agreement. What to look out for when entering into one and what are its advantages? This is the focus of our article.

Conditions for entitlement to the benefit

To qualify for unemployment benefits, you must meet several conditions:

  1. You have had at least 12 months of paid pension contributions in the last two years. However, the necessary period of insurance is not only acquired through employment, but also, for example, through caring for a child under four, receiving a third degree disability pension, community service of more than 20 hours a week, caring for people with varying degrees of dependency, or long-term voluntary service.
  2. You have filled in an Application for Job Placement and applied for support at the regional employment office.
  3. You are not in receipt of an old-age pension or currently in any employment relationship at the date of the award.
  4. You are a permanent resident of the Czech Republic.

The application can be submitted either in person at the Labour Office, by post (registered letter) or electronically – via data box or e-mail with a certified signature.

Tip for article

If you’re approaching retirement age, it may be worth taking early retirement instead of signing on with the Job Centre and receiving benefits. You can read about the conditions and other specifics in our article.

Amount of support

The amount of unemployment benefit is determined as a percentage of the claimant’s average monthly net earnings in the last job, converted to 1 calendar month. The percentage rate is:

  • 65 % for the first 2 months
  • for the next 2 months 50 %
  • the remaining sub-assistance period (varies according to age and can be up to 7 months) 45 %, which is the minimum possible rate.

Your financial situation is also affected by any severance pay. To find out the exact amount, you can use the online severance calculator which will calculate the amount based on the vesting period and your average earnings. This can help you plan your finances better during unemployment.

The method of termination is also an important factor; if the claimant left their last job without good reason, either on their own or by agreement with their employer, the rate of support is only 45% for the entire support period. Serious reasons include, for example, personal care for a child under the age of four, care for another dependent, or the child’s attendance at school or nursery. In addition, immediate termination of employment by the employee (for example, because the employer fails to pay wages).

Tip for article

As mentioned above, if you were previously self-employed, you may also be entitled to unemployment benefits. The period and the percentage for calculation remain the same as for former employees, only the amount is calculated on the so-called assessment base. This depends on the amount of pension contributions you pay. If you were self-employed and paid only the minimum pension contributions, your monthly assessment base (in 2024) would be CZK 16,295.

Unemployment benefits in 2025

As we have already mentioned, although the amount of unemployment benefit is based on your current earnings, there is a cap. This is based on the minimum subsistence level.

The maximum monthly unemployment benefit is 58% of the average wage set by the MLSA. In 2025, the maximum unemployment benefit is CZK 26 163.

Exceptions to unemployment benefit

Jobseekers are not entitled to unemployment benefit:

  • with whom the employment relationship has been terminated in the last six months prior to being entered in the register due to a particularly serious breach of employment obligations. If this situation arises, we recommend that you try to arrange with your employer to terminate the employment relationship by written agreement, in which case you will be entitled to the benefit even if you receive only the lowest rate.
  • who is entitled to a retirement allowance that is higher than the allowance (e.g. a professional soldier, police officer, firefighter, etc.).
  • who is in non-colluding employment on the date the benefit is due. He must therefore stop it if he wishes to receive the allowance. As stated above, no additional earnings are possible.

Support period

The period of unemployment benefit is referred to as the ‘ sub-support period’. It depends on the age at the date of application and is for a jobseeker

  • up to 50 years → 5 months
  • over 50-55 years → 8 months
  • over 55 years → 11 months

The reason for giving older applicants an advantage is that it can be much harder for them to find a job.

Entitlement to the benefit ends when the support period expires (but a person can continue to be registered as a jobseeker, but this is not mutually exclusive), when the registration ends, or when the person is removed from the register, for example if he or she fails to attend an appointment at the Job Centre without good reason or does not take up a suitable job offered to him or her.

If you fail to get a job during the support period, you may still be on the register of jobseekers, have your health insurance paid for and may be able to get some social benefits. These include housing benefit, subsistence allowance, housing benefit or emergency assistance.

Tip for article

You can read when you can be removed from the Job Centre and what the consequences are.

Summary

If you find yourself unemployed, it is important to register with the Job Centre – ideally within three days of leaving your job. This will not only ensure that you have state-funded health insurance, but also that you can get unemployment benefits. Unemployment benefit is based on your previous income and has fixed percentages that decrease during the support period. However, the maximum amount of support is limited. The length of the benefit depends on your age and ranges from 5 to 11 months.

Remember that any earnings above half the minimum wage are a bar to receiving support, as is serious misconduct in previous employment. However, if you do not meet the conditions, you are still entitled to be registered with the Job Centre and to other social benefits.

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Author of the article

JUDr. Ondřej Preuss, Ph.D.

Ondřej is the attorney who came up with the idea of providing legal services online. He's been earning his living through legal services for more than 10 years. He especially likes to help clients who may have given up hope in solving their legal issues at work, for example with real estate transfers or copyright licenses.

Education
  • Law, Ph.D, Pf UK in Prague
  • Law, L’université Nancy-II, Nancy
  • Law, Master’s degree (Mgr.), Pf UK in Prague
  • International Territorial Studies (Bc.), FSV UK in Prague

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