Shortening Parental Leave in the Czech Republic – Who Benefits? Everyone.

On April 22, 2025, the 10th annual "Mothers and Fathers Welcome 2025 – Parents at Work" conference took place. The conference was organized by Business for Society in partnership with Česká spořitelna, a.s., Heimstaden Czech, s.r.o., and the Embassy of Sweden in the Czech Republic.

This year’s theme built upon last year’s conference, which was inspired by Sweden. Continuing in the same agenda, we were among the first to open a serious debate on the systemic reform (shortening) of parental leave in the Czech Republic, including an economic analysis.

The Czech Republic has long ranked among the top countries in terms of parental leave length. At first glance, it looks idyllic – three years at home with a child and a state allowance. But what if it’s more of a trap than a benefit?

Almost 300,000 women are currently on parental leave. We will mainly discuss women–mothers, who account for 98% of parental leave caregivers. Men–fathers make up less than 2%. Many women remain outside the labor market – often not by choice. According to a survey by MUMDOO, the majority would like to return; 93% of mothers express a desire to work during parental leave. Yet only half of them actually work – and merely 23% for their original employer.

We have motivated, educated, and qualified women. Instead of contributing to economic growth, their skills remain untapped. Economist Claudia Goldin, who focused on this in her research, calls it the “motherhood penalty” – and the data supports her conclusion. After childbirth, women face professional and financial setbacks, often never regaining their previous positions. Goldin was awarded the Nobel Prize in Economics for her work on this issue.

Today’s Czech labor market is desperately seeking employees. And we are letting this human capital go to waste. Isn’t that a pity?

That’s why we decided to stop beating around the bush. It’s time to say out loud that the time has come to open a serious debate about shortening parental leave in the Czech Republic. Economic, social, and societal contexts compel us to do so. Once again, we draw inspiration mainly from Sweden (although other Scandinavian countries have similar parental leave systems). This time, we also incorporated an essential economic framework and presented remarkable figures.

Economist Petr Bartoň, commissioned by us, calculated that if parental leave in the Czech Republic were "Swedified" – that is, shortened by half – it would bring 35 billion CZK annually to the state budget. This would be solely from taxes and contributions, without additional expenditures. You can find more details in his presentation below and in his article for Hospodářské noviny.

What else? The parental allowance would be increased. This could also lead to greater involvement of men–fathers in parental caregiving. Currently, fathers make up a mere 2% of those on parental leave. This is not discrimination, but rather the economics of family life. Usually, the lower earner stays at home.

The Gender Pay Gap – the difference between the wages of men and women – would also decrease. This gap begins to widen after the birth of a child and persists until retirement, with women typically receiving lower pensions. Many women never manage to close this gap.

Women–mothers also want to pursue professional development and build their careers. Some want to work full-time, others part-time, and some only occasionally. Supportive work conditions and programs for parents at work, including various forms of workplace flexibility, are the right solutions. Companies that understand this benefit – not only through employee loyalty but also in their reputation and results.

However, to make the shortening of parental leave truly effective, we must simultaneously invest in supporting families – especially in accessible early childhood care. Without this, it won't work. "Shortening parental leave" does not mean taking away, but rather giving – freedom of choice, opportunities, economic support, and recognition.

We will continue to focus intensively on this topic and bring more interesting information.

Below you will find the presentations from the speakers of the "Mothers and Fathers Welcome 2025" conference and a photo gallery.

Watch the video below and discover how Heimstaden’s Scandinavian approach to parental leave strengthens employee loyalty, promotes gender equality, and boosts business performance. Chief People and Culture Officer Marianne Frønsdal shares insights from Denmark, Norway, and Sweden on why supporting working parents is a smart strategic move.