Czech Parliament approves budget rule changes and new benefit calculations

The Czech Parliament has overridden President Petr Pavel's veto to approve changes to public budget rules. While part of the amendment aligns the national fiscal framework with new European regulations, the new laws include significant exceptions. Specifically, special treatment for defense spending exceeding 2% of GDP and certain infrastructure projects will be extended until 2036.

Separately, new calculations for social assistance benefits are impacting self-employed individuals. For those with primary business activities, the Labor Office may use a fictitious income floor of 38,000 CZK for benefit assessments, regardless of actual earnings. This figure is based on 80% of the projected 2026 average wage. This calculation method can reduce or eliminate eligibility for housing, subsistence, or child benefits. Rules differ for secondary activities and those in the flat-rate expense regime, where income assessments can reach significantly higher thresholds.