Dear Clients and Partners,
Please, let us inform you that on 5th March 2021, the Czech president signed a bill which introduced the payment of an additional benefit for employees ordered to stay in quarantine (or isolation), also referred to by the media as isolation benefit („izolačka“).
- The benefit amounts to up to CZK 370 per each calendar day of mandatory quarantine or isolation and will be paid for a maximum of 14 days. The total salary compensation paid to an employee, including the additional benefit, may not exceed 90 % of the employee’s average earnings.
- All employees who are entitled to salary compensation due to mandatory quarantine or isolation between 1st March 2021 and 30th April 2021, are entitled to the benefit.
- Employees ordered to stay in quarantine or isolation within 5 days after their return from abroad will not be entitled to the benefit, unless their travel abroad was for work.
- The benefit is exempted from personal income tax and is therefore not included in the employee’s assessment base for calculation of social security and health insurance payments.
- The benefit will be paid to employees by their employers together with the salary compensation paid for the period of quarantine or isolation.
- Employers will be able to deduct the amount of the benefits paid to their employees from the social security payments due in the given month, provided that the additional benefits will be paid before the end of the second month following the month in which the employer deducted the benefit from the social security payments (i.e., if an employer makes the deduction in April, the benefit must be paid to the employee on 30th June, at the latest). The deduction must be made within 3 calendar months from the end of the quarantine or isolation period which it is paid for.
- The benefit also applies to mandatory quarantine or isolation ordered in case of an infectious disease other than COVID-19.
Your LTA team