Manual COVID-19: The Antivirus “C” Programme

Another act mitigating the effects of the spreading of the Covid -19 disease, this time aiming at smaller employers. The act on waiver of social security contributions and the contribution to state employment policy (hereinafter “the Act”) will make the situation easier for employers, who continued to operate more or less in the same way even during the emergency situation. On 19 June 2020, the bill was signed by the President. As of today, 22 June 2020, the act has not been published in the Collection of Laws, it will happen in the course of this week.

Basic information

  • The bonus has the form of waiver of insurance premium for social security and the contribution to state employment policy (hereinafter “the Bonus”) reaching 24.8 % of the base of assessment of every employee;
  • The employer will thus bear the cost per employee reaching gross wage plus public health insurance premium reaching 9 % of the base of assessment of the employee;
  • The employees, for whom the Bonus can be used, must be participants in sickness insurance;

When will it be possible to use the Bonus?

  • The bonus period will apply to the months of June, July and August 2020 and the conditions will be assessed separately for every calendar month (hereinafter the “Bonus period”).

Conditions for obtaining the Bonus in the Bonus period

  • As of the last day of the month, in which the employer will be requesting the Bonus, as compared to 31 March 2020, it is necessary for:
  1. employment to be at least on the level of 90 %;
  2. wage decrease to reach a maximum of 10 %.
  • The number of employees in labour relation must not exceed 50 on the last day of the month.
  • For the given month, the employer must pay the insurance premium, which he withheld from his employees' wages.
  • If the employee's wage exceeds the sum of CZK 52,253, the employer will pay insurance premium, of which he is a payer, which will be calculated from the sum exceeding this sum. The employer can thus save up to CZK 12,959 per one employee.
  • The employer does not need to request the Bonus, he will apply it himself using the prescribed form, which he submits to the social security administration every month, directly calculating the sum lowered by the insurance premium.
  • The waiver of insurance premium cannot be applied additionally after having submitted the form for the given month in the bonus period.

Who is not entitled to the Bonus?

  • An employer, who is using support in the given month from the Antivirus programme for partial payment of wage costs when paying reimbursement of wages;
  • An employer in public sector, who remunerates employees with a salary (plat);
  • Providers of healthcare services, to whom a special act will apply;

  • An employer, who is not a tax resident of the Czech Republic or a tax resident of another EU member state or an EEA country and did not achieve a majority of his relevant income in the taxable period for the corporate income tax from sources on the territory of the Czech Republic.

Authors: Veronika Odrobinová a Dominik Beran