Photo: KK for Brno Daily
Prague, Aug 21 (CTK) – The difference in average retirement pensions between Czech men and women has narrowed this year as at the end of last year, female pensioners received about one-fifth less than male pensioners, but just 13 percent less this June.
At the end of the first half of the year, the Czech Social Security Administration (CSSZ) was sending the average senior citizen 21,520 crowns, while the average senior woman was receiving about 2,500 crowns less.
As of this year, 500 crowns per child is paid as an educational allowance. The pension has thus automatically increased for 1.4 million women for their three million children. In the future, the education allowance should replace the inclusion of fictitious income and deductions for the time spent caring for small children in the new pensions.
Some 949,000 men and 1.41 million women now receive old-age pensions from the CSSZ. From the end of last year to the end of June this year, the average pension for senior women increased by 2,554 crowns after indexation and with an education allowance, while the average pension for senior men increased by 1,765 crowns.
From December to the end of the first half of the year, women improved their average pension from 16,484 to 19,308 crowns and men from 19,755 to 21,520 crowns. The difference in retirement pensions between men and women has thus decreased from about 20 to 13 percent.
The retirement pension is part of the merit portion of the pension. It will be indexed along with it. The pace of indexation is set to slow down from next year. The opposition has criticised the government for this, talking of robbing pensioners. The cabinet points to a significant increase in pensions to catch up with inflation. In June, the average senior couple had a combined net monthly income of 40,558 crowns. Last December it was 4,319 crowns less.
Poverty threatens mainly old lonely women.
The drop in pensions for men and women has been slow so far. At the end of 2005, old women received 23 percent less than their peers. Ten years later, the amounts were 22 percent different. Last year, the gap was just under 20 percent.
Lower earnings are behind the lower pensions. Women tend to work in lower-paid fields and jobs, but even in the same positions as men, they earn a tenth less, according to studies. Recent research by the Institute of Sociology of the Academy of Sciences of the Czech Republic has shown that 30 percent of the earnings gap is due to motherhood and childcare.
The child-raising allowance was introduced into law shortly before the end of the last parliamentary term as a proposal by the then-governing Social Democrats, without providing money to pay it. About 19 billion crowns is to be paid out this year, with spending set to rise in subsequent years.
In future years, new pensions should replace the education allowance with a notional contribution for care time, set on average wages. This is envisaged in the draft pension reform changes presented by the government in May.
Average old-age pensions for women and men in crowns and their percentage difference in each year
| Women | Men | Difference in percent | |
| June 2023 | 19,038 | 21,520 | 13 |
| December 2022 | 16,484 | 19,755 | 19.8 |
| December 2021 | 14,060 | 16,900 | 20.2 |
| December 2019 | 12,277 | 14,783 | 20.4 |
| December 2015 | 10,302 | 12,551 | 21.8 |
| December 2010 | 9,189 | 11,240 | 22.3 |
| December 2005 | 7,030 | 8,662 | 23.2 |
| December 2000 | 5,729 | 6,995 | 22.1 |
($1 = 22.089 crowns)
