Unemployment benefit – what are you entitled to?

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 leaving 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.

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

You can also go to the Labour Office if you worked 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.

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 9 450 for 2024. This is a gross wage.

It isnecessary to notify the Labour Office of the performance of the non-colliding employment, no later than on the day of commencement. If you earn more than CZK 9,450 in non-colluding employment, you will be removed from the register of applicants. You will also be excluded if you are found to be working illegally.

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 the support is granted.
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.

Amount of support

The amount of unemployment benefit is determined as a percentage of the applicant’s average monthly net earnings from the last job, calculated on a monthly basis. 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.

However, 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).

Unemployment benefits in 2024

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

The maximum monthly unemployment benefit is 58% of the average wage set by the MLSA. In 2024, the maximum unemployment benefit is CZK 24 608.

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 wants 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 period 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 aid.