Labour minister defends plan to lower unemployment benefits

Labour and Social Affairs Minister Aleš Juchelka (ANO) has defended the government’s plant to lower unemployment benefits. During a session of the lower house on Thursday he told MPs that the higher benefits introduced by the previous cabinet had failed to boost the labour market, and the number of unemployed had increased. Finance Minister Alena Schillerová (ANO) said the proposal reflected the current situation on the Czech labour market. She added that higher benefits could encourage people to remain on them for longer.

Under the government proposal, which still needs parliamentary approval, unemployment benefits in the first two months would fall from 80 percent of previous earnings or the assessment base to 65 percent from January. The maximum benefit would be capped at 60 percent of the average wage, down from 80 percent.