Increase in Czech Pensions from June by an Average of 755 Kč

According to the article, starting Thursday, senior citizens and disabled pensioners can expect higher monthly pensions, with an average increase of several hundred korun. This extraordinary valorization is a response to inflation.

The pension percentage will increase by 2.3% from June 1st, along with a fixed amount of 400 korun. The spokesperson for the administration, Jitka Drmolová, stated that this valorization would result in an average increase of 755 korun for old-age pensions.

The average amount of a single old-age pension will thus rise from 19,461 to 20,216 koruna. The increase was planned to be higher, but the government hastily changed the valorization formula, citing the need to curb rising pension expenses. The opposition party ANO has filed a complaint with the Constitutional Court against this decision. However, the relevant judge is still studying the case, and the court has not yet decided.

The increase applies not only to old-age pensions but also to disability and survivor’s pensions. The Social Security Administration has already started sending notifications to pensioners about the specific amount of their increased pensions, initially through data boxes and later through the Czech Post.

Additionally, accident-related disability pensions will increase, compensating for lost earnings due to work-related accidents or occupational diseases. These payments, however, are handled by commercial insurance companies rather than the social security administration.

The pension increase in June applies to all individuals whose pension was granted by the end of May. The increase will be effective from the day of recognition for those whose entitlement is recognized and their pension calculated after that date. There are tens of thousands of people in this situation.

The Czech Social Security Administration has struggled to process pension claims for several months. Over 22,000 people have been waiting for more than three months since submitting their applications, which exceeds the legal deadline. In addition to the delay in receiving pensions, affected individuals also face the disadvantage of not having health insurance contributions paid on their behalf.

Prime Minister Petr Fiala (ODS) apologized for the situation, acknowledging that the long wait and lack of pension payments are unreasonable. He stated that the government and Minister of Labor and Social Affairs Marian Jurečka (KDU-ČSL) are addressing the issue. As a short-term measure, priority will be given to those at risk of social and legal endangerment.

Fiala attributed the situation to unexpected demand for early retirement, childcare payments, and low digitalization in the department. Personnel measures have been implemented to strengthen the workforce and provide training to process exceptional cases. The government is also working with health insurance companies to simplify specific processes. The office defended its handling of other administrative matters, stating there are no issues in those areas.