What is maternity benefit (PPM)?

Who is eligible? A parent caring for a newborn – usually the mother and, less commonly, the father – plus the sickness insurance requirement

How long does it last? 28 weeks (starting 6 or 8 weeks before the expected due date). For twins or multiple births, 37 weeks.

How much will I receive? Calculated based on income

Where do I apply? District Social Security Administration

The sickness insurance requirement – self-employed people

Your entitlement to maternity benefit depends on whether you pay voluntary sickness insurance. As a self-employed person, you qualify for maternity benefit only if you have paid sickness insurance at least at the minimum rate for:

  • at least 180 days in the 1-year period before starting maternity benefit
  • at least 270 days in the 2-year period before starting maternity benefit

 

The minimum sickness insurance contribution is CZK 216 a month (for 2024). The more you pay in sickness insurance, the higher your maternity benefit will be. 😉 Of course, there is also an upper limit on the monthly sickness insurance contribution. The maximum sickness insurance contribution is individual and is based on the monthly assessment base. You can find this figure in Section F, item 35, of your self-employed income and expense statement for the previous year. The maximum monthly sickness insurance contribution is then 2.7% of your monthly assessment base.

Example: the monthly assessment base for 2023 is CZK 20,000 -> the maximum monthly sickness insurance contribution is CZK 540.

You can also pay sickness insurance if you are self-employed under the flat-rate tax scheme. The maximum monthly sickness insurance contribution is fixed according to your flat-rate tax band:

  • Band I – CZK 410
  • Band II – CZK 758
  • Band III – CZK 1,159
Maternity benefit claimed by the child’s father/husband

In certain cases, the father can also claim maternity benefit. This applies when the mother cannot or does not wish to care for the newborn.

The father can start maternity leave only after the first six weeks, i.e. from the 7th week after birth. He can receive maternity benefit for up to 22 weeks. If he is caring for twins or multiple children born together, he is entitled to up to 31 weeks.

Please note: the combined maternity benefit period for both parents must not exceed 28 or 37 weeks respectively.

Applying for maternity benefit

The application form itself is issued by the gynaecologist providing your antenatal care. The doctor confirms your expected due date in the first part, and you complete the required information in the second part yourself before submitting the whole form to your local OSSZ office. Naturally, you can also submit it through your data box.

If the father is applying for maternity benefit, he must submit an application to the OSSZ. A written agreement between the parents confirming that the father is caring for the child must be attached.

Amount of maternity benefit

Calculating maternity benefit is fairly complicated. The calculation uses three reduction thresholds. If you want an estimate of your benefit, I recommend using the online calculator on the Ministry of Labour and Social Affairs website.

Payment of maternity benefit

The benefit will be paid into your bank account or by postal money order to your address.

Running a business while receiving maternity benefit

The main condition for receiving maternity benefit is that a mother on maternity leave must not personally carry out her business activity. The purpose of maternity benefit is to let her focus solely on caring for her child rather than working. An exception applies if she has employees in her business. She can continue invoicing provided that all the work is carried out by her employees and she devotes herself fully to her child.


What is parental allowance (RD)?

Who is eligible? A parent caring for a child under 3, regardless of whether they are employed, self-employed or, for example, a student.

How long does it last? 2–3 years, according to the parent’s preference

How much will I receive? A fixed total amount of CZK 350,000. For twins or multiple births, you are entitled to a total of CZK 525,000.

Where do I apply? Labour Office

Further information about applying for parental allowance and its conditions is available on the Labour Office website. 

Running a business while receiving parental allowance

There are no restrictions on business activity while receiving parental allowance. One benefit of running a business during parental leave can be lower social and health insurance advance payments. Business activity is automatically treated as a secondary activity while you receive parental allowance. The minimum advance payments for secondary activity in 2024 are available on my blog. 😉

If anything is unclear, please feel free to arrange an in-person or online consultation. 🙂