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This article analyses the options how changes in Czech tax-benefit system could increase mother´s economic activity. The article builds up on the study (previous author´s study published in 2015). This underlying study presents a calculation according to which women, taking care of children up to 3 years, results with a lower net cash flow after returning to work compare to staying at home. The aim is to propose measures that would motivate women, with children up to 3 years, to return to work and simultaneously quantify the impact of these measures on the state budget. Economic effects of the proposed measures are quantified, including the cancelation of conditional entitlement to parental benefit, introduction of tax relief for working mothers and 50% relief on employer's mandatory contributions, which employ parents part-time. Implementation of these measures, which would motivate more women to return to work, would bring an estimated net income amounting to 9.5 billion crowns to the state budget per year.

Measures to Increase Economic Activity of Mothers with Children under Three Years Old