Babiš Wants to Review Unemployment Benefits: Calls the Rise in Payouts Illogical

Czech Prime Minister Andrej Babiš has said that the recent rise in unemployment benefits looks illogical and makes it less worthwhile for people to look for work. He made the comment while answering a question about a possible reduction in payments to the unemployed.

“Benefits have grown illogically, and as a result it’s become more advantageous not to work,” Babiš said. He was discussing the budget of the Ministry of Labour and Social Affairs with Minister Aleš Juchelka (ANO movement), and one of the topics raised was why the unemployed are receiving more money.

“That’s unfair. Anyone who wants to find a job can find one,” the prime minister said, adding that the Czech Republic is short of workers.

The amount of unemployment benefit depends on the recipient’s age. For the first two to three months, the unemployed can receive 80% of their previous net earnings, up to a maximum of 38,537 crowns, after which the amount gradually decreases. Depending on age, benefits can be paid out for five to 11 months.

According to June data, the average benefit payment was 17,213 crowns — nearly five thousand crowns more than at the end of last year, and the highest figure ever recorded.

The unemployment rate in the Czech Republic stood at 4.8% in June.

Around Prague, based on reporting by novinky.cz