Czech government proposes cuts to unemployment benefits

The Czech government has proposed a legislative amendment to reduce unemployment benefits, aiming to save approximately five billion koruna annually. The proposal, which has passed its first reading in the Chamber of Deputies, seeks to lower the initial support level from 80 percent to 65 percent of previous earnings during the first two months of unemployment.

Under the new rules, support would then drop to 50 percent for the following two months, eventually settling at 45 percent. The plan also includes adjustments for individuals over 52 years of age and changes to benefits during retraining programs. Labor Minister Aleš Juchelka stated the changes are intended to motivate job seekers more quickly, citing a high number of vacancies and rising expenditure on benefits.

The proposal faces significant opposition from trade unions, employers, and political parties. The SPD movement has announced it will vote against the measure, while the Czech-Moravian Confederation of Trade Unions has criticized the move, arguing that the government is targeting the finances of people who have just lost their livelihoods.