Maternity financial assistance vs. parental allowance
It is important to differentiate between maternity benefits and parental allowances before we go into the actual changes and calculations.
The maternity benefit (PPM) precedes the parental allowance, the mother can apply for it at her own discretion 8–6 weeks before the expected date of childbirth, and it is necessary to fulfil two conditions regarding participation in the sickness insurance.
The parental allowance is a continuation of the PPM (if the mother was entitled to it) and belongs to parents who personally take care of their child throughout the day. The only condition for obtaining the parental allowance is a permanent residence in the Czech Republic (while EU citizens only need a temporary residence permit). Thus, not all Czech parents are entitled to PPM, but in the case of parental allowance, the situation is different.
Parental leave 2020: Are there big changes ahead?
There will be no significant changes in maternity benefit support in 2020. However, something else applies to the parental allowance to which those who were born or adopted were entitled.
The amount of parental allowance has not changed over the last six years. To date, the total parental allowance amounted to CZK 220,000, or if twins and more children were born to parents, they had CZK 330,000. Since 2020, however, the government has approved an increase in parental allowance by CZK 80,000 to CZK 300,000, and for families with twins or more children to CZK 450,000.
This is not a breakthrough change, but even a slight increase can help, especially to some households. How not to lose the raise and get this amount? MEPs are still arguing about their proposals. However, the guidance on applying for parental allowance should not be fundamentally different from the 2019 “manual”.
Maternity leave 2019 and what do you have to fulfil?
Seriously? Whoever termed this period as maternity leave probably never spent time with a baby who can handle 15 diapers a day. So, how is it with the parental leave and who can apply for PPM?
During maternity leave, you can say goodbye to the salary/wage sent by your employer, but you will be paid by the so-called Maternity Cash Assistance (PPM) throughout your maternity leave if you meet 2 conditions.
- The applicant for PPM must be insured at the time of taking up the benefit, or the so-called withdrawal period from the expired sickness insurance must last.
- The applicant for PPM must be insured for at least 270 days in the last two years prior to taking this benefit (different rules apply to self-employed persons, see below).
You can be on maternity leave for a maximum of 28 weeks after birth. If your joy was multiple and there were born more children, it can be up to 37 weeks.
How to apply for parental allowance
In addition to the finding nursery clothes and furnishings, those entitled to a PPM must also start to deal with the so-called Maternity Cash Request. This form will be issued to you by your gynaecologist, ideally 6-8 weeks before delivery.
The attending physician will fill in the upper half of the form for you, but you will have to deal with the lower half yourself. In this case, you will indicate when you are going to take maternity leave, it cannot be earlier than 8 weeks before the date of birth. You will hand over the form to your employer, who will forward it to the Czech social security administration (ČSSZ). Exceptions are entrepreneurs and self-employed persons who have to submit an application for PPM separately to the ČSSZ.
Who can apply for the parental allowance?
Who is entitled to the parental allowance and what changes are planned in 2020?
- The parent has permanent care for the child up to 4 years of age.
- The claim is made by the mother or father of the child who is also listed in the birth certificate.
- Markéta Pekarová Adamová (TOP 09) is trying to push through a proposal that grandparents could also take parental allowance in 2020.
The parental allowance is to be requested before the end of the PPM. If you are one of those who are not entitled to maternity benefits, apply for this allowance from the first day of your child's birth.
Calculation of your parental allowance or How to Obtain Parental Allowance
Unfortunately, this process is lengthy and not very entertaining. We can imagine at least 1987 more fun activities, including a visit to your mother-in-law. You must complete 2 (3 for foreigners) steps.
- Fill in the Application for Parental Allowance, the easiest way to do so is through an interactive form on the MoLSA (Ministry of Labour and Social Affairs) website. In addition to personal data, points E and F, which form part of the form, are essential:
- Point E "Dates of granting the allowance" - indicate the date from which you wish to receive the contribution. You can also apply for it retroactively, up to 3 months.
- Point F “Required amount of the allowance” - this includes the calculation of the amount of parental benefit. The maximum amount of the contribution is calculated from the daily assessment base determined by the ČSSZ. This is 30 times 70% of the daily assessment base. However, the parent may require a lower benefit and spread the benefit over a longer period of time.
Example: The daily assessment base was set at CZK 600, the required benefit amount is CZK 12,600 (600 x 30 x 0.7).
Attention! If you have low earnings or were not eligible for a PPM, you may receive a maximum of CZK 7,600 per month. According to the law, the highest possible contribution is CZK 32,640.
- Come to the Labor Office in your place of residence, namely the State Social Support Department. Be sure to bring some documents
- Filled in Parental Allowance Application Form.
- Identity card.
- Child's birth certificate.
Hand over the application directly to the Office to prevent the form from being filled in incorrectly.
Note: Recently there has been a breakthrough change and the Labor Office obtains a certificate of entitlement to benefits of Czech citizens from the database (originally they had to submit an application). For foreigners, however, what was also true of Czechs in the past applies. Citizens of other countries must first visit the ČSSZ with the form Confirmation of entitlement to benefits (compensation) affecting the entitlement and the amount of the parental allowance. Do not forget to fill in your name, child's name and social security numbers. The ČSSZ will determine your daily assessment base from which the parental allowance is calculated.
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