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| The Czech government is considering doubling the pension valorization |
| Prag, 10.08.2026 |
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| Old-age pensions in the Czech Republic may increase across the board by approximately CZK 300 (EUR 12.37) from January. This is indicated by the formula for calculating the regular increase, but it is not excluded that the increase will be double. Minister of Labor and Social Affairs Aleš Juchelka admitted that the government may use the legal option to increase pensions beyond the normal valorization. The coalition is already discussing the final form of the addition to pensioners. If the plans are implemented, the state budget would increase by up to CZK 10 billion. The server novinky.cz reported this.
According to Juchelka, the standard valorization is now based on approximately CZK 300 per month for all old-age pensioners. This would mean the weakest increase in pensions in January since 2017. The reason is the low inflation from which the valorization is calculated, as well as the fact that the recently started growth in real wages has not yet been reflected in the formula.
However, the minister pointed out that the government can increase the valorization by decree based on the legal authorization. "It currently amounts to 1.4%, but thanks to the government decree, we can go up to 2.7%. That means 600 CZK. If we agree on that, then definitely. Personally, I am in favor," Juchelka told Czech Television.
However, an increase beyond the legal valorization would mean another significant burden on public finances. While increasing pensions by 300 CZK would cost the state budget approximately 10 billion CZK per year, doubling this amount would mean an additional 10 billion CZK.
The coalition therefore does not yet have a unified opinion. Even Finance Minister Alena Schillerová, who must draw up the budget for next year by the end of September, does not want to promise pensioners a higher valorization.
According to Vladimír Pikora, chairman of the budget committee of the Chamber of Deputies, pensions should increase according to the law, not according to which minister is currently offering the highest amount. He added that any increase above the legal framework would represent a permanent expenditure of the state budget, for which the government must clearly state from what sources it will finance it in the following years.
Most opposition representatives and economists also have a similar position on a higher valorization. Petr Dufek, the chief analyst of Banka Creditas, warned that it would deepen the state budget deficit and increase the state debt. “This is not a one-off intervention, but a permanent increase in pensions, and therefore a permanent burden on the expenditure side of the budget. It is a purely political decision,” Dufek told Novinky.
Juchelka added that the final parameters of the January valorization will only be known in September, when definitive data on wage growth will be available. Then the government should decide on a pension increase.
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(1 EUR = 24.261 CZK) |
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