Czech government removes promised higher pension indexation from draft law

The Czech cabinet decided not to include a provision that would raise pension payments by half of real wage growth, reverting to the current one‑third increase. The change, originally promised in the coalition programme, was stripped from the draft pension bill and is expected to be reconsidered in a later amendment. The Finance Ministry opposed the immediate adoption, calling for a comprehensive review together with reforms for demanding professions, and the Ministry of Labour complied.

The draft also dropped the previously discussed age ceiling of 65 for retirement. Other measures that remain include age‑based pension boosts of CZK 500 every five years after age 80 and CZK 1,000 after age 100, as well as a more favorable increase of 1.5 % per year for work performed after reaching pension age starting in January 2028. Despite the removal, the Ministry of Labour continued to promote the higher indexation on social media as a government achievement.