Czech Government Approves Higher Pensions for Working Pensioners and People Over 80

The Czech government has sent to the Chamber of Deputies an amendment to the pension insurance act that raises payments for working pensioners and for people of very advanced age. Labour and Social Affairs Minister Aleš Juchelka (ANO) announced the cabinet's decision on his page on the social network X.

"The changes have a clear goal — to encourage those who want to remain economically active after retirement, to better support people of very advanced age, and to simplify how the whole system works," the minister said.

Under the amendment, the pension increase for working pensioners for each additional year worked is being reinstated — the percentage bonus will grow by 1.5% per year. At the same time, the requirement to file an application for pension recalculation is being scrapped: for employees, the increase will now be applied automatically depending on how much they have worked.

The discount on social insurance contributions, introduced by Petr Fiala's (ODS) government back in 2024 alongside the abolition of bonuses for extra years worked, will also remain in place. "We want working after reaching retirement age to be more attractive to people. Everyone who chooses to stay active contributes not only to their family budget but to society as a whole," Juchelka added. The new pension-increase mechanism is due to take effect from 2028.

Starting next year, the percentage bonus to pensions is also set to rise regularly from age 80 — automatically, every five years. At 80, 85, 90 and 95, the pension will increase by CZK 500 per month, and after age 100 — by CZK 1,000 per month. Currently the bonus stands at one thousand crowns at age 85 and two thousand crowns upon reaching a hundred.

The amendment also enshrines in law the already existing practice of paying pensions abroad in a currency other than the Czech crown, and clearly sets out the rules for covering costs linked to currency exchange.

However, the change to the valorisation formula for the January pension increase, originally announced, did not make it into the amendment. "The reason is that the Ministry of Finance raised a fundamental objection to this — we will return to the issue together with the topic of early retirement and limits on the retirement age. Our position remains unchanged: according to the government's policy statement, we want to increase the regular valorisation from one-third to one-half of real wage growth," Juchelka explained.

The amendment still needs to be approved by the deputies and signed by the president.

Source: novinky.cz