Government To Support Closed Establishments With CZK 400 Per Day, Per Employee

The government has approved a CZK 6 billion support program for all establishments forced to close due to anti-coronavirus measures. CZK 400 per day for each employee will be paid to restaurants, fitness centers, retailers, hair and beauty salons, museums, and others. Photo: Deputy Prime Minister and Minister of Industry, Trade and Transport K. Havlíček at a press conference, 4 January 2021. Credit: Vlada Archive. 

Czech Rep., Jan 5 (BD) – The government announced on Monday that all establishments closed due to the coronavirus epidemic will be entitled to compensation of CZK 400 per day for each worker. The government approved the decision on Monday afternoon. According to Minister of Industry and Trade Karel Havlíček, writing on Twitter, business owners affected by the coronavirus pandemic and related government measures can draw full compensation for wages, levies, and rent for the fourth quarter of last year, and there will be a compensation bonus for the self-employed.

The CZK 2.5 billion COVID – Gastro program was initially intended to cover the period from October 14th to December 31st, 2020. When this fund is exhausted, the Cabinet will discuss how to further finance the program. This program has now been extended to January 10th, with the addition of CZK 400 per employee, per day for all closed establishments, including the self-employed. The program will now cover not only restaurants but also fitness centers, retailers, hair and beauty salons, museums, and other affected businesses. 

Following the new decision, the costs of the suspension and/or limitation of operations from October 14th to January 10th will be calculated, taking into account the profit loss of each working day for each employee, excluding public holidays. 

The Ministry of Industry and Trade estimates that CZK 6 billion will be needed for the program. According to documents, applications for the support are expected to open sometime in January, but details have not yet been published. The Ministry must notify the European Commission of the program. The government added that the period of compensation may be extended further depending on the development of the pandemic situation.  

The strictest fifth level of the PES anti-epidemic system is now in place in the Czech Republic. Restaurants can only sell take-away food and drinks through dispensing windows.

Retailing is prohibited except for foodstores, pharmacies, drugstores, opticians, or haberdasheries. Most services are not allowed to operate, and fitness centers, gyms, swimming pools, and saunas are closed. Hotels can only accommodate guests for business purposes.

Establishments which can receive support: 

  • Restaurants, cafes, and bars;
  • Indoor sports facilities, fitness centers, swimming pools, spa and wellness facilities; 
  • Cultural establishments, museums, exhibitions, galleries, castles, planetariums, observatories; 
  • Performance venues, concert halls, theatres, cinemas
  • Hair and beauty salons; 
  • Entertainment premises, clubs, circuses, event organizations;
  • Fairs, conferences, and educational events
  • Zoos
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