Average Old-Age Pension in the Czech Republic Reaches Over 20,000 Crowns

As of June, all pensions are being increased due to inflation. The average old-age pension will increase by 755 crowns and reach an average of 20,216 crowns. The Czech Social Security Administration (CSSA) announced that all types of pensions, including old-age (including so-called early), disability, widows’, widowers’, and orphans’, will be exceptionally valorized. The valorization will be automatic and does not need to be requested.

Pensions are made up of essential and percentage parts. The essential part is a fixed part of the pension and is the same for all pensioners. The law sets its amount at 10 percent of the average wage. The exact amount of the essential part is determined for the entire following calendar year by government regulation and does not increase during exceptional valorization.

The percentage part of the pension is individual and depends on the specific insurance course. The higher the income a person has achieved during the relevant period and the longer the insurance period, the higher the percentage part of the pension.

In the case of the June exceptional valorization, the percentage part of the pension will increase by 2.3 percent. It will also be increased by a fixed amount of 400 crowns (or a partial fixed amount corresponding to the ratio of Czech insurance periods to the total insurance periods acquired in the Czech Republic and abroad).

This amount will be paid out from the date of the June pension payment. The increase in the percentage part by 2.3 percent and by a fixed amount of 400 crowns also applies to pensions granted in 2023, including those granted after the exceptional valorization period, i.e., from June 1, 2023, to December 31, 2023.

In the case of multiple pensions, each pension’s entitlement to a 2.3 percent increase is assessed separately. When multiple pensions are paid out, the fixed amount of 400 crowns is paid out only once to the percentage part of the pension that is paid out in full or whose percentage part is not reduced for multiple pension payments, regardless of whether the primary part of the pension is paid out with that pension.

Recipients of pensions are informed of pension increases and supplements by a notification sent according to the due dates of their pensions.