Czech government considers reintroducing waiting period for sick pay

The Czech government is considering reintroducing a waiting period for sick pay, which means employees would not receive sick pay for the first three days of illness. The waiting period was abolished four years ago, and the impact of this move is being evaluated in an analysis by the Ministry of Health, which is expected to be completed this month. Most of the coalition parties consider reintroducing the waiting period as a meaningful saving. However, the opposition wants people to continue to be reimbursed for the first days of illness.

The waiting period was initially abolished to provide a safety net for employees in the Czech Republic, and sick pay was made available to them from the first day of their incapacity to work. However, after the waiting period was abolished, there was a 17 percent increase in sick leave. It is essential to note that coronavirus distorted the statistics on sick leave. Minister of Labor and Social Affairs, Jana Maláčová, cautions that the reintroduction of the waiting period could lead to pressuring people to think twice about going to work, putting them in a more complicated situation.

TOP 09 has long favored the reintroduction of the waiting period, and party leader Markéta Pekarová Adamová has recently confirmed this view. Representatives of ODS and STAN have expressed similar views. In contrast, the Pirates have long criticized the abolition of sick pay for the first three days of illness. The Christian Democrats are also cautious about the proposed change.

If the waiting period is reintroduced, employees will receive sick pay only after three days of their incapacity to work, and they will receive 60% of their base earnings. Currently, employers pay the first 14 days of sick leave, and insurance contributions for employees fell by two-tenths of a percentage point after the waiting period was abolished. One of the proposed options to reintroduce the waiting period is to raise this payment again. However, there is concern that such a move could lead to the burden shifting back to employers and create administrative challenges.

The Czech government’s decision on whether to reintroduce the waiting period for sick pay will be informed by the Ministry of Health’s analysis. However, whatever the decision, it is essential to consider the impact on employees and their ability to take sick leave when necessary to prevent the spread of illness.

Article by Prague Forum

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