Czech Republic

Policies

(116,000 large families)

1. Regarding policies for large families at a national level, please mark the measure you have in your country:

Direct monetary benefits
Reduced prices on basic supplies (energy, water, etc.)
Housing subsidies
Reduced prices in public transportation
Tax deductions
Large families cards
Longer maternity/paternity leave for large families
Support to buy a car
Other benefits

2. Which specific monetary allowances for large families are in your country.

There are no specific monetary allowances for large families in our country. Large families can use the same benefits as other families with children, such as a child benefit, which is an income-tested benefit.

3. Which specific fiscal deductions for large families are in your country.

Child tax benefit: This is a tax credit and possibly a tax bonus if the tax credit is not used up – the family receives the rest in the form of a tax bonus.

The benefit is graduated according to the number of children to support mainly families with 3 or more children:

Annual allowance for the 1st child CZK 15,204
Annual allowance for the 2nd child 22 320 CZK
Annual allowance for the 3rd child and each additional child 27 840 CZK

The benefit is not limited by the number of children. In addition, the current government’s programme declaration plans to introduce a tax holiday with income capping for families with at least one child under the age of three or with three or more children. However, families with lower incomes already pay no income tax and receive tax bonuses from the state.

4. Which specific reduced prices on basic supplies for large families are in your country

None

5. Which specific benefits are provided by the large families card in your country

The family policy strategy proposes support for large families through a national “Family Card” which would take into account daily life of families. For example through discounts on fares, admission to cultural events, the establishment of forms of accommodation, purchases of goods for families with children. The measure will be closely linked with the existing systém family and senior passes already operating at the level of some regions. Nevertheless, it is still only a proposal.

6. Which specific maternity or paternity benefits for large families are in your country

There are no specific maternity or paternity benefits for large families in our country.

7. Which specific benefits for large families buying a car are in your country

In our country a specific benefits for large families buying a car is not introduced.

8. Which specific public transportation benefits for large families are in your country

None.

9. Please write any other specific deductions or benefits for large families that are in your country

Pension system area: From 1 January 2023, the parent who has cared for the child to the greatest extent is entitled to a childcare allowance of CZK 500 per month. This is an increase in the old-age pension for bringing up a child or children. Pension reform plans to modify this valuation of child rearing – the so-called family assessment base for determining pensions.

The individual average earnings for the time a parent is caring for a small child (up to the age of 4) are now used to calculate the pension for the time the parent is working.

For the first two children born, it should be based on the current average wage in the Czech Republic during the given year, up to the age of 3 years. This would particularly help mothers with lower incomes. If a parent starts working before the child reaches the age of 3 years, the contributions on earnings would be calculated in addition, which would strengthen the incentive to work (even part-time work) while caring for young children.

However, the alternative current calculation based on the average earnings of the caring parent over his/her working career will remain and if it is more advantageous for e.g. high earning caring parents, the pension will be determined by this method. The measure applies to a parent caring for a child under 3 years old and also to those caring for a disabled family members.

The childcare allowance of CZK 500 per child raised will be maintained from the third child raised – for the third and each subsequent child, the caring parent (usually the mother) will receive an additional CZK 500 per month on top of the pension.

10. Are any of the benefits for large families in your country connected to income? If yes, please explain.

Some benefits are generally linked to family income, no special benefits for large families are implemented.

11. Regarding policies for large families at European level, please mark the measures you have in your country

Reduced VAT for diapers and basic goods for children
Unpaid care of children in the household and for other dependent family members is recognized as work when calculating the national GDP
Permit for large families with 7 and more children to drive the family van without professional driving license
Basic consumptions tariff: water, electricity, gas, etc. is calculated taking into consideration the number of children

12. If you marked at least one of the measures mentioned above as applicable in your country, please provide details

Reduced VAT for diapers and basic goods for children: it is not aimed only at families with children, but has a big impact on them.

(Answers provided by YMCA Zivá Rodina)