As of January 1, 2024, the Czech Republic has implemented a substantial increase in the parental allowance, providing crucial financial support for families with newborns. The amendment to the State Social Support Act, approved in November, has raised the allowance by CZK 50,000, elevating it from CZK 300,000 to CZK 350,000 for parents of children born on or after the aforementioned date.

The parental allowance is a significant form of financial assistance for parents, kicking in after the conclusion of financial aid during maternity leave (“mateřská”). Generally, this assistance starts when the child is around six months old. Unlike some financial support systems, the parental allowance is not contingent on the household’s income or the gender of the parent receiving it. Parents can exercise flexibility in deciding the monthly amount they wish to receive and the duration over which they receive it.

One notable change accompanying the increase in the allowance is the reduction of the maximum payment period from four years to three years. This adjustment aims to balance the support provided with the evolving needs of families over time.

The monthly allowance amount is determined by the parent, with the maximum monthly sum being based on the individual’s previous income. Those who have not received financial assistance during maternity leave or had a lower income (such as self-employed individuals, students, or the unemployed) can request a maximum monthly allowance of CZK 13,000. For others, the choice is more flexible, allowing them to set the monthly contribution amount based on their preferences.

The application process for the parental allowance has been streamlined, with an online application system available since August 2023. Minister of Labor and Social Affairs Marian Jurečka (KDU-ČSL) expressed satisfaction with the increase, emphasizing its role in actively supporting families during a period filled with both joys and challenges, helping alleviate the costs associated with childcare. This positive step reflects the government’s commitment to prioritizing family welfare and child development.

Article by Prague Forum