Retired and Disabled Pensioners Receive Higher Pensions

Starting today, retired and disabled pensioners will receive higher pensions. The average increase is 755 CZK due to extraordinary indexation caused by high inflation that has affected the Czech Republic over the last two years.

Jitka Drmolová, a Czech Social Security Administration spokesperson, confirmed that the average old-age pension would reach 20,216 CZK. Currently, the average old-age pension is 19,461 CZK.

It is unnecessary to apply for an increase as it is done automatically and applies to old-age, disability, and survivors’ pensions. Pensions consist of two parts: the solidarity necessary amount, which is the same for everyone, and the percentage amount based on merit, which reflects the years worked, earnings deductions, and the number of children.

The percentage of pension amount increased by 2.3% in June, plus a fixed amount of 400 CZK. The basic amount only increases during regular January indexations. Pensions approved before June 1st will have increased since the June payment. Pensions approved by the end of the year will be automatically indexed from the date they are approved.

For example, pensions with the current amount of 14,000 CZK will increase by 630 CZK, while pensions based on 16,000 CZK will increase to 16,676 CZK. Additionally, people who reach 85 in June will receive an additional thousand CZK in the indexed percentage amount.

Thousands of people are waiting for their pensions to be processed for several days due to the large number of applications. Therefore, they will not miss out on the current increase. This is probably the last extraordinary indexation. According to current inflation figures, another indexation will not seem to occur this year.

Starting next year, the state plans to introduce a temporary extraordinary contribution instead of indexations in case of a sharp price rise. It will only be paid until the end of the year if the cumulative price increase reaches five percent. The calculation of regular indexations will also change. However, it must still be approved by parliament and signed by the president.

Slowing down pension indexation and tightening conditions for early retirement will be discussed by MPs at an extraordinary meeting next Thursday.