Flood 2024 programme: support for businesses through contributions for wage expenses
For businesses affected by this year’s floods, the government has approved the provision of support through contributions for wage expenses. The contributions will be provided under the Flood 2024 programme launched by the Ministry of Labour and Social Affairs. It is intended for employers who had to interrupt their operations due to damage to property or disruptions of power or raw material supplies and therefore must pay wage compensation to their employees. The maximum contribution is CZK 18,400 per month per employee.
The exact wording of the programme has not yet been published. Based on information available to us, below we summarise the key points of the Flood 2024 programme.
What situations the programme covers:
Employers whose employees are entitled to wage compensation because of an impediment to work on the employer’s part due to:
- interruption of work due to flood damage to property (where wage compensation equals at least 60% of average earnings)
- disruption of power or raw material supplies (where wage compensation equals at least 80% of average earnings) will be able to apply for this type of contribution.
The programme should apply to all regions except Central Bohemia, Pilsen, Karlovy Vary and the capital city of Prague.
Compensation amount
The contribution should equal 50% of the wage compensation (including mandatory social security and health insurance contributions) paid by the employer for the period beginning on the fifth calendar day following the date of the first relevant impediment to work at the employer's premises and ending on 31 October 2024. The maximum contribution should be CZK 18,400 per month per employee.
How to proceed
First, the employer must file an application with the appropriate labour office. Then, a written agreement between the labour office and the employer including the conditions for the contribution will be entered into. The contribution for a calendar month should be provided as soon as possible based on the statement of wage compensations submitted by the employer together with evidence of a causal link between the impediment to work and the floods.