State receives 8.2 billion crowns less in social insurance payments year-on-year

The Czech state received some 146.6 billion crowns (7.9 billion USD) in social insurance payments in the first five months of this year, a figure down by 8.2 billion crowns on that of the previous year. The spokesperson of the Czech Social Security Authority, Kamil Vařeka, said this drop in revenue was most likely down to the current financial downturn. The amount generated by social insurance payments is not set to grow in the coming months as new legislation, which still needs to be signed by President Vaclav Klaus, most likely comes into effect, cutting the amount that employers have to pay in social insurance payments for each of their employees. The bill is a bid to stop lay-offs in the current financial crisis. Social insurance revenues are also thought to be down due to rising unemployment in the Czech Republic.

Author: Rosie Johnston