Czech Ministry proposes 300 CZK increase for all pensions

The Czech Ministry of Labour and Social Affairs has proposed a pension increase for January, which would raise old-age, disability, and survivor pensions by 300 CZK. This increase applies to the solidarity fixed component, raising it from 4,900 CZK to 5,200 CZK. Under this proposal, the minimum old-age pension would rise from 9,800 CZK to 10,400 CZK. The merit-based component, which reflects years worked and earnings, is not expected to increase.

Labour Minister Aleš Juchelka noted that while leaders of the coalition parties may discuss larger increases, the budget for next year remains very tight. The proposed valorization would result in an average old-age pension of 22,192 CZK by June 2026, a 1.4 percent increase.

Separately, regarding tax implications for retirees, employees who retire mid-year may be eligible for a tax refund. Because the taxpayer credit is applied annually, individuals who stop working before the end of the calendar year may receive a refund for the months they did not work, provided they paid sufficient income tax advances during the year.