Who qualifies?
This bonus is not only for owners of closed premises (as in autumn 2020): once again, disruption to supplies or a drop in sales due to the pandemic is sufficient (as in spring 2020).
The compensation bonus is available to a self-employed person or a shareholder in a limited liability company for whom income from the affected business is their predominant income. Employment therefore does not rule out compensation. Put simply: if most of your income comes from your own business, which is significantly affected by COVID, read on. 🙂
How far must sales fall to qualify?
The main condition for qualifying for the compensation bonus is that your monthly income is less than half that in previous periods (a decrease of at least 50%). Eligibility must be calculated using a specific procedure.
| Assessing entitlement to the compensation bonus | |||
| Bonus for the month | Compare income for | with average monthly income two years earlier during | or with average monthly income one year earlier during |
| February 2021 | January 2021 | 11/2018 – 1/2019 | 11/2019 – 1/2020 |
| March 2021 | February 2021 | 12/2018 – 2/2019 | 12/2019 – 2/2020 |
| April 2021 | March 2021 | 1/2019 – 3/2019 | 1/2020 – 3/2020 |
Choose whichever of the two comparison periods benefits you more. Remember that the comparison period changes each month: it rolls forward. Actual figures are the best way to illustrate this.
Example of a business owner wishing to apply for the February 2021 compensation bonus:
| Assessing entitlement to the February 2021 compensation bonus: | |
| Income for January 2021 | CZK 30,000 |
| Choose between the two comparison periods (add the income for those months and divide by 3 to obtain the average monthly income for that period): | |
| 11/2018 – 1/2019 | (25,000 + 75,000 + 35,000) / 3 = CZK 45,000 |
| 11/2019 – 1/2020 | (76,000 + 76,000 + 97,000) / 3 = CZK 83,000 |
| Then compare the figures to see whether you qualify (January income must be at least 50% lower than in the selected period). Compared with 11/2018–1/2019, income has fallen by 33.33%. Compared with 11/2019–1/2020, it has fallen by 63.86%. The business owner therefore qualifies for the February compensation bonus using the 11/2019–1/2020 comparison period. | |
I meet the conditions: how much will I receive?
The maximum is CZK 1,000/day. That means up to CZK 28,000 for February and CZK 31,000 for March.
But there is a catch here too. To receive the maximum bonus, the difference between income in the current and comparison periods must be at least CZK 28,000 for the February application and CZK 31,000 for March.
In the example above, the business owner would qualify for the full CZK 28,000 for February (83,000 – 30,000 → a difference of CZK 53,000, which exceeds CZK 28,000).
If the difference is smaller than the bonus amount — for example CZK 20,000 — you qualify for a compensation bonus equal to the difference: CZK 20,000.
Do you also pay sickness insurance? You can receive another bonus!
Self-employed people who pay sickness insurance can receive another bonus if ordered to isolate or quarantine. In that case, they can receive CZK 500 for each day of quarantine.
Calculating eligibility is not difficult, even if it may appear so. Naturally, I will gladly help my affected clients with everything. If you are unsure, do not hesitate to get in touch and we will look at it together. 🙂