Czech lower house backs plan to reduce unemployment benefits amid opposition protests

In its latest session, the Czech Chamber of Deputies endorsed a government-draft amendment to the labour code that would reduce the level of unemployment benefits. The administration argues the reform will generate substantial savings and encourage job seekers to return to work amid a high number of vacancies. Opposition parties, trade unions and the coalition partner SPD protested, warning the cuts would disadvantage the unemployed.

The proposal, which also incorporates an EU directive on pay transparency, survived an opposition attempt to block it and will be reviewed by the social committee. Former labour and social affairs minister Marian Jurečka criticised the plan as contrary to citizens’ interests, whereas current minister Aleš Juchelka said the labour market needs faster reintegration of job seekers. The previous coalition under Petra Fialy had introduced one outlet benefit levels, which this amendment seeks to lower.