Amendment to the Employment Services Act

Amendment to the Employment Services Act

An amendment to the Employment Services Act came into effect on 01.09.2025, bringing significant legislative changes in the area of material need assistance. These changes focus primarily on adjusting the conditions for providing material need assistance benefits, strengthening motivational tools to support employability, reforming the activation allowance, and expanding the circle of persons eligible for the dependent child allowance.

The aim of the adopted legislative measures is to increase the efficiency of the system of assistance in material need and to support the independence and work activity of citizens, particularly through the "Work instead of benefits" program, which emphasizes the return of individuals to the labor market and reducing their dependence on social benefits.

The most significant changes brought about by the amendment to the law are:

1. expanding the scope of competence of the offices of labor, social affairs and family to include the mediation of suitable employment for persons in material need, which will now take into account the health status, qualifications and professional skills of the citizen and the type of work performed so far;

2. introduction of a sanction in the form of a reduction in the material need benefit by 86.50 eur for each adult household member, for non-cooperation of a citizen in the mediation of suitable employment, which means refusing a job offer without a serious reason, refusing to take up employment or failing to appear at an office or place designated by the office. The sanction for repeated breach of obligations may lead to a reduction in the benefit for up to three consecutive months;

3. introduction of an advantage for persons who become employed while receiving a material hardship benefit, whereby income from a dependent activity or similar employment relationship during the first six calendar months will be included in the assessment of entitlement to the benefit in a preferential manner, namely 100% of income is not taken into account for the first two months, 75% of income is not taken into account for the next two months, and 50% of income is not taken into account for the remaining two months. Under the new law, employment bonuses and tax bonuses are not considered income for the purposes of material hardship assistance;

4. introduction of an activation contribution in three levels, according to the level of activity of a citizen in material need, namely for income from dependent activity at least equal to the minimum wage, a contribution of 176.80 eur per month, for persons studying, improving their qualifications or participating in retraining for at least 32 hours per month, a contribution of 132.60 eur per month, and for participation in projects and programs implemented under the Employment Services Act, a contribution of 88.40 eur per month;

5. expanding the target group for the dependent child allowance to include children in kindergartens and secondary and university students, to the amount of 24.20 eur per month, which is intended to improve motivation for children's education.