Working pensioners in Czechia entitled to social insurance discount worth up to thousands of crowns a month

Working pensioners in Czechia are entitled to a discount on social insurance contributions equal to 6.5% of their assessment base — essentially their salary or income. The benefit has been in place since January 2025, and anyone who forgot to apply for it can still claim back overpaid contributions for this year and last.

Who qualifies for the discount

The discount is available to people who have reached retirement age and are receiving their pension in full. If someone took early retirement but had their pension payments suspended after returning to work, they should apply to have the payments resumed along with a recalculation. The discount applies to employees, entrepreneurs, self-employed people, and those working under a contract whose income exceeds the threshold on which social insurance contributions are calculated.

How much you can save

The discount amounts to 6.5% of the assessment base — for employees, this is generally their gross salary before tax. With a monthly salary of 30,000 crowns, a person gets an extra 1,950 crowns, while at 40,000 crowns, the saving rises to 2,600 crowns.

How employees can apply for the benefit

Employees need to submit an application to their employer — to the accounting or HR department — along with supporting documents. The discount takes effect from the month the application and documents are submitted; it cannot be applied retroactively. A written request, sent by email or through a designated form, is sufficient.

Employees must give their employer the decision granting their old-age pension and a statement confirming their entitlement to receive the pension in full (or a certificate from the Czech Social Security Administration confirming pension payment). If these documents aren't on hand, they can be requested at any branch of the administration or online via its ePortál portal.

What entrepreneurs and self-employed people should do

Sole traders can apply the discount in their annual income and expenses report, or start using the reduced rate for advance payments during the year right away. As a rule, self-employed people don't need to attach any documents to their annual report — the social security administration checks pension payment data itself. The exception is when the pension is paid by a different institution.

To start paying reduced advance payments during the year, you need to notify your local social security office using the "Notification of Data Change" form on the ePortál portal. Those on the flat-tax regime cannot apply the discount to reduced advance payments — they can only claim it as a one-off the following year.

How to reclaim an overpayment

If someone was entitled to the discount but didn't use it, they can apply for a refund of overpaid social insurance contributions retroactively for up to five years. The request is submitted to the relevant branch or via ePortál. Employees must submit a special application along with a certificate from their employer stating the size of their assessment bases — employers are required to issue such a certificate within eight days of the request. Self-employed people can submit a written request for a refund to their local social security office.

Source: novinky.cz