Unemployment benefits in the Czech Republic will change significantly from 1 January 2026. The new rules bring higher benefits, abolish the penalty for voluntary redundancy and adjust the length of the support period according to age. The changes build on previous amendments to the Labour Code and have a major impact on when, how much and under what conditions people receive support. We explain exactly what is changing and what rights employees and jobseekers have.
Unemployment benefit is not a social benefit in the true sense of the word, but a benefit from the social insurance system. It is not automatic for everyone who loses their job, but only for those who meet the legal conditions. The basic condition is participation in the pension scheme for a specified period of time – typically at least 12 months in the last two years before being registered as a jobseeker.
The purpose of unemployment benefit is to bridge the period between two jobs and to ensure that a person is not left without any income while actively looking for a new job. It is therefore not a ‘reward for inactivity’, but a temporary financial assistance conditional on cooperation with the Labour Office, willingness to take up suitable employment and fulfilment of other obligations of the jobseeker.
It is this insurance character of the support that makes its amount dependent on previous income and why the state monitors how long a person has been economically active. At the same time, the system is also designed to protect people returning to the labour market after a longer break – for example, after parental leave or after studying – albeit under different conditions.
The changes effective from 2026 significantly strengthen this original purpose of the support and bring it closer to the reality of the current labour market.
One of the most significant changes brought about by the amendment to the Employment Act as of 1 January 2026 is the abolition of the so-called penalty pay. Until now, if an employee terminated the employment relationship on his or her own – typically by termination or agreement without a serious reason – he or she was only entitled to reduced unemployment benefits for the entire support period. The amount of the benefit was fixed and significantly lower than for people who were dismissed by their employer. If the employer gave notice, the unemployment benefit was 65 % of average net earnings in the first two months (50 % and 45 % thereafter), whereas if the employer gave notice or agreed to an agreement without a serious reason, it was reduced to 45 % for the whole of the sub-replacement period. The difference could therefore be as much as 20 percentage points at the start of the registration period.
This approach was based on the assumption that voluntary departure from work was an expression of personal choice and therefore did not deserve the same level of protection. In practice, however, it often led to unfair consequences – for example, in situations where the employee left a long-term unsatisfactory or psychologically taxing job without meeting a narrow set of so-called serious reasons.
From 2026, this distinction is abolished. Unemployment benefits will now be granted at the same rate regardless of the way in which the employment relationship was terminated. Only the age of the claimant and the fulfilment of the statutory conditions for participation in the insurance will remain decisive criteria.
The change significantly strengthens the legal certainty of employees and removes the fear that self-initiated dismissal automatically entails a financial penalty. However, the amendment does not apply to cases where the employment relationship has ended due to serious misconduct on the part of the employee.
Have you applied for sickness, maternity, parental allowance or other benefit and instead of the expected support, you received a rejection? Or were you awarded a benefit in a lower amount than is appropriate for your situation?
As of 1 January 2026, not only the conditions for entitlement to unemployment benefit will change significantly, but also the amount of unemployment benefit itself. Claimants will feel the biggest difference in the first few months after losing their job.
Whereas previously the maximum benefit in the first two months was 65% of the previous average net earnings, it will now be 80%. This is the most financially demanding period for most people. In the following months, the allowance is gradually reduced – first to 50% and then to 40% of the previous salary. This model is intended to encourage people to actively look for work, but at the same time not to plunge them into existential problems as soon as they lose their jobs.
The maximum possible amount of support is also being increased. It will now be linked to the average wage in the national economy and can be up to 80% of that amount. Compared to the previous capping, this is a significant shift – especially for those who had higher incomes, paid higher contributions but previously received support capped by the capping.
To get a better idea, consider an employee with an average net wage of CZK 28 000.
This means a difference of around CZK 21 000 in favour of the new rules.
Voluntary redundancy will no longer automatically mean a significant financial loss. This will make it easier for people to decide to change jobs, retrain or take a short break without fear of being in existential distress. At the same time, the incentive to find a new job as soon as possible remains – as the amount of support decreases over time.
In addition to the amount of support itself, the amendment to the Employment Act also regulates the length of the so-called “support period”, i.e. the period of time during which a candidate can receive unemployment support, from 2026. The law is still based on the age of the applicant on the day of filing the application, as age significantly affects the chances of returning to the labour market.
Younger applicants are expected to find new employment more quickly and therefore the support period remains shorter. On the other hand, for older people, the state assumes that the job search may take longer and provides support for a longer period. At the same time, from 2026, the age limits that determine the length of support will shift, which in practice means that some people will be eligible for support for longer than before.
Length of support period:
And what does the support look like in specific months?
The new regulation of unemployment benefits from 2026 also takes into account groups of claimants who were rather neglected in the past. In particular, there is a significant improvement in retraining support. During the period of approved retraining, the claimant will now receive support equal to 80% of his/her previous average net earnings or assessment base. The aim is to eliminate situations where people have been refused retraining simply because they have run into financial difficulties during their studies.
The changes also affect people who did not have a traditional job income during the reference period and who nevertheless meet the conditions for inclusion in the register of jobseekers. These are typically graduates, people returning to the labour market after parental leave or people who have been caring for a loved one. For these applicants, the support is now set at a multiple of the average wage in the national economy, with significantly higher amounts than under the previous arrangements.
As of 1 January 2026, the unemployment benefit system is undergoing its biggest change in years. The benefit is being increased significantly, especially in the first months of unemployment, when it will now be up to 80% of previous net earnings. At the same time, the maximum possible amount of support is also increased, which is now linked to the average wage in the national economy.
A major innovation is the abolition of the penalty for voluntary redundancy. The amount of the allowance will no longer depend on whether the employee has given notice or terminated the employment relationship on his or her own. The age of the applicant and compliance with the statutory conditions for participation in the insurance remain the decisive criteria. The only exceptions are cases of serious breach of employment obligations.
The length of the support period is also changed according to age and the conditions are improved for persons in retraining and for those who did not have a regular income during the reference period. Overall, the system better reflects the reality of the current labour market and strengthens the protection of people in transition between jobs.
Yes, from 2026 the amount of the benefit will be equalised regardless of how the employment relationship was terminated. Termination by the employee does not in itself mean lower support. The exception is where the employment relationship has ended because of serious misconduct.
No. Support is highest in the first few months of unemployment (80% of previous earnings) and then gradually decreases. This model is designed to provide financial security at the start and to encourage active job search.
The decisive factor is the age of the applicant at the date of the application for inclusion in the register of jobseekers. Not the age at the end of the employment relationship. Even a difference of a few days can make a difference to how long you will be entitled to benefits.
Have you applied for sickness, maternity, parental allowance or other benefit and instead of the expected support, you received a rejection? Or were you awarded a benefit in a lower amount than is appropriate for your situation?
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.
In person and online. Just choose the appropriate service or opt for an independent consultation when you are unsure.
