Pensioners are already receiving the third improvement this year

The increase in pensions was adjusted by a government regulation. This is the third increase by law this year. In addition to the standard January valuation, pensions were increased due to the sharp rise in prices already in June.

Compared to last year, the average old-age pension is increasing by a total of 2,518 crowns this year.

“This does not only apply to old-age pensions, but it applies to everyone who receives some form of pension,” Prime Minister Petr Fiala (ODS) reminded on Thursday in the House of Representatives.

During the regular January valuation, the average pension increased by 502 crowns. All people with a pension then received an additional 300 kroner to the merit portion in addition to the legal addition.

In June, during the first extraordinary increase, the percentage increased by an average of 1,017 crowns, and now by 699 crowns from September, so that the average pension should now reach 17,996 crowns.

But people with a below-average pension will improve less. The pension consists of two parts. The basic part is the same for everyone and should correspond to one tenth of the average salary. This year it is 3900 crowns. The rest is made up of merit based on years of service and the amount of earnings and contributions. It is precisely the merit or percentage acreage that is adjusted.

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Some experts and politicians criticize this setting, as people with a higher pension will benefit more from the extraordinary addition, while those with a lower pension will benefit less. The government’s National Economic Council therefore recommended changes so that the lowest pensions would grow more significantly during valorization due to price increases.

Almost 57 billion crowns are needed for this year’s three valorizations. This year’s expenditure on pensions could thus approach 600 billion crowns.

From January also with education

Pensions will be adjusted again during the regular valorization from January next year. “Another piece of good news for our seniors is that from January next year there should be an average increase in the old-age pension by another 850 crowns,” confirmed Fiala yesterday.

The exact amounts will be known only in September. In contrast to the extraordinary valuation, the basic area will also increase during the regular January valuation. It should exceed 4,000 crowns. With bonuses for raising a child, which will be a novelty promoted by former Minister of Labor and Social Affairs Jana Maláčová (ČSSD), the average pension could be around 19,500 crowns from January. After the New Year, the old-age pension of the parent who mainly cared for the child will be increased by 500 crowns for each child raised.

According to the Minister of Labor and Social Affairs, Marian Jurečka (KDU-ČSL), after the increase, the average old-age pension should correspond to 46.9 percent of the average wage. Jurečka said that this is the highest share since 1991.

At the end of June, the Czech Social Security Administration paid pensions to more than 2.84 million people.

The article is in Czech

Czechia

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