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From January 2025, the basic amount of all pensions will increase by 290 crowns per month. The percentage portion will increase by 0.4 percentage points. People with an average pension will receive an increase of 356 crowns per month.
The average pension in the Czech Republic will rise to 21,078 crowns per month. The final figure will be determined in September depending on wage developments.
“The increase will cost the state budget 12.2 billion crowns. Next year, there will be a deficit of 18.3 billion crowns between insurance premium income and pension spending.” He added that pensions have grown 18% faster than inflation over the past 10 years.
About 2.85 million people receive pensions from the Czech Social Security Administration (ČSSZ).
So far, pensions are Appropriate pricing Their increase is due to full inflation and half of real wage growth. From January 2025, they will continue to increase due to inflation, but by only a third of real wage growth. Lastly, they will be based solely on increases in the cost of living for pensioners.
Until now, valuations have been based on either the rise in consumer prices for pensioner households or for all households – whichever inflation was higher.
The new rules for pension valuation also do away with special valuations, which were used to increase pensions if prices rose by more than 5% month-on-month during the monitoring period since the last increase. The state will pay the interim payment at the next regular assessment instead of making a special assessment.
At the same time, the merit component of pensions will increase, but only temporarily. The increase in January will be as much percentage points higher and as much percentage points lower. The increase in temporary contributions and percentages should reflect 60% of the price increase during the review period.
In 2025, pension payment dates will also change. Their number will be reduced from fourteen to seven. “We expect that in the second quarter of next year the payment dates will be reduced to a total of seven, i.e. on even-numbered days from the 2nd to the 14th of each month,” said Jitka Drmolová, a spokeswoman for the social administration.
Hundreds of thousands of pensions—— elderly, People with disabilities I survivor – So next year, people will start visiting on different days than before. The change will also affect beneficiaries of nursing homes and similar facilities.
Another innovation that will be implemented from next year is the payment of pensions every calendar month. Until now, most pensions in the Czech Republic were paid in advance on a “rolling month” basis. For example, an elderly person whose pension regularly expires on the 16th of each month will receive the payment on 16th August for the period from 16th August to 15th September.
The new rules stipulate that pension will be paid regardless of the day on which the regular payment date falls. For example, a person who will receive pension on the eighth day of each month will receive pension on the 8th day of the calendar month (i.e. July 1 to 31). Just like a person will receive pension on the twelfth day of each month.
Currently, pensions are paid only on a calendar month basis to members of the armed forces or their surviving dependents (i.e. soldiers, police officers, etc.). The Ministries of Interior, Defense, and Justice are responsible for administration. The rules will be unified for everyone pension No matter who pays who. We wrote more about it here: Changes await pension payments. People will get a new date
Katerina Khovolkova
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