Average Retirement Pension In The Czech Republic Rises To CZK 19,438
Over 952,000 men and over 1.4 million women receive old-age pensions in the Czech Republic. Photo credit: Freepik.
Prague, Jan 27 (CTK) – The average old-age pension in the Czech Republic reached CZK 19,438 in January after indexation and a pension bonus of CZK 500 per dependent child, CZK 1,377 more than in December, according to data and estimates from the Czech Social Security Administration (CSSZ) provided to CTK.
Due to the bonus for raising a child, which was newly introduced as of 1 January, the increase mainly applied to women, and thus the difference between the average male and female pensions has decreased by almost 20% compared to December. The difference is now about 13% on average.
In January, female pensioners received about CZK 2,500 less than men on average.
Over 952,000 men and over 1.4 million women receive old-age pensions in the Czech Republic, from a population of 10.5 million.
The military and police have their own pension systems.
The average old-age pension for men reached CZK 20,710 in January, CZK 955 more than before, while women got CZK 18,255 on average, an increase of CZK 1,771. Male seniors received on average CZK 3,271 more in their pension than women in December, while now, the average pension of men and women differs by CZK 2,455.
CSSZ said the results were preliminary, and precise numbers for January would be available in February.
Last year, pensions increased three times: at first in January, as normal, then twice more in June and September to reflect the high inflation rate. Last year, the average old-age monthly pension for men thus increased by CZK 2,855 year-on-year, and for women by CZK 2,424.
The lower pension for women is due to lower lifetime incomes and earlier retirement age than men, based on the number of children. The retirement age is gradually equalising, and should unify completely over the next decade.
The state will spend about CZK 19 billion on the bonus for dependent children this year, and this expense will increase gradually.
The government’s National Economic Council (NERV) proposes that the bonus should be cancelled due to the rising debt levels in the pension system.
However, Labour and Social Affairs Minister Marian Jurecka (KDU-CSL) rejected this proposal. He told reporters that the bonus was the “levelling of injustice,” noting that pension levels should reflect not only income but also dependent children. He also said it could lead to a higher birth rate, which would in turn secure the sustainable future of the pension system.
Average old-age pension at the end of individual years:
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