The goal of this paper is twofold: to present a description of the most important institutional changes taking place in Czech social policy after 1989, and to offer the explanation of these changes in a broader cultural, economic and political framework. The significant economic, social and cultural conditions of the country, in which social policy operates, comprise the disposable economic resources, the concept and realization of economic reform including changes in ownership rights, the capacity of public administration, the way political democratization is designed and implemented, and political priorities and concepts of the political elite actually in power.
Recent developments in the labour market and the new patterns of employment policy are discussed in more detail. After that, the incidence of poverty and the ongoing social and economic stratification are associated with the new approaches to the construction of a social security system which has been composed of three main tiers (or "pillars"): social insurance, state social support, and social assistance.
As a conclusion, the sensitive points of the present state of Czech social policy, along with crucial decisions to be taken in the future, are identified.