Work detail

Assessment of a Potential Reform of Parental Allowance System in the Czech Republic

Author: Bc. Veronika Martínková
Year: 2019 - summer
Leaders: Mgr. Barbara Pertold-Gebicka M.A., Ph.D.
Work type: Bachelors
Language: English
Pages: 56
Awards and prizes:
Abstract: Parental allowance system in the Czech Republic offers a very long scheme of paid
leave for parents of small children compared to other countries. Most parents choose to
receive it up until sometime between their child’s second and third birthday, the limit
being the fourth birthday. Absolute majority of those receiving parental allowance in the
Czech Republic are women. This thesis is assessing costs and benefits of reforming the
parental leave system, as was recommended by the OECD. This reform would shorten
the length of allowance collection and would reserve some of it to fathers. We found
that such a reform could bring up to 5.98 billion CZK to the state budget in the most
optimistic scenario compared to current situation. We have included direct expenditure
on parental allowance, but also the increased revenues due to higher maternal
employment, lost revenues from the time fathers would spend on leave and costs of
childcare provision. Despite the possible financial gains and other benefits, such as
overall improved situation of mothers in the labour market, we concluded that neither
Czech politicians, nor Czech society would be prepared for such a radical change and
only a milder reform would be viable.


Česká Spořitelna


Patria Finance