Pensions To Rise By CZK 825 Per Month From January
The average monthly old-age pension in the Czech Republic will increase by CZK 825 from January, to reach CZK 19,500. Photo Credit: Freepik
Prague, Sept 19 (CTK) – The average monthly old-age pension in the Czech Republic will increase by CZK 825 from January, according to a provisional decision published online by the government yesterday. The solidarity part of all pensions will rise by CZK 140, and the merit part by 5.1%.
As of January, the merit part will also increase by a bonus of CZK 500 per dependent child.
Meanwhile, the average old-age pension is to reach CZK 19,500 in January, according to the Czech Ministry of Labour and Social Affairs.
As of the end of June, the Czech Social Security Administration was paying out pensions to over 2.84 million people of the whole national population of 10.5 million. Of these, 2.36 million are old-age pensions.
The government report did not state the anticipated total cost of the indexation from January. The Labour and Social Affairs Ministry only says the draft budget for next year takes this expenditure into account.
Under the state budget bill, the Labour and Social Affairs Ministry is to receive almost CZK 82 billion more in 2023 than this year, amounting to a total of CZK 637.6 billion. The defence, interior and justice ministries have their own pension systems.
This year, pensions have been increased three times. After the regular January indexation, there were another two extraordinary rises in June and September to compensate for soaring prices.
“Due to the extraordinary indexation in September 2022 and the ‘upbringing bonus’ in January 2023, the average independently-paid pension will be CZK 19,500 in January 2023, according to the latest estimates,” the ministry said.
Old-age, disability, widow’s, widower’s and orphan’s pensions have been indexed in the Czech Republic since January, by law. They are raised on the basis of the consumer price index and half of the growth in real wages.
Each pension consists of two parts. The basic part is equal for all and should correspond to one-tenth of the average wage. The merit-related part of the pension depends on the number of years worked by the recipient and their previous contributions to the social insurance system.