Prague, Dec 27 (CTK) – Old-age, disability and probate pensions will go up in the Czech Republic as from January 1, 2017, as will the bonuses going to former resistance fighters, communism prisoners and their widows and widowers.
A total of 2.39 million people received old-age pensions in the 10.5-million Czech Republic as of the end of September 2016.
In addition, 427,400 people received disability pensions and 64,000 probate pensions.
The average monthly old-age pension was 11,441 crowns in September. It will rise by an average 309 crowns as from January.
The fixed part of the pension, which is the same for all pensioners, will increase by 110 crowns to 2,550.
The other part, derived from the recipient’s previous wage and number of years at work, will increase by 2.2 percent.
The disability and probate pensions will increase in the same way.
The bonuses of former resistance fighters and communism prisoners will also increase by 2.2 percent.
Pensions have been annually raised as of January 1. They increase by one third of the growth of real wages and the living costs in the preceding period.
Earlier this year, the centre-left government pushed through the government’s authorisation to order a steeper rise in pensions in case it is only negligible based on the official calculation method.
Empowered to raise pensions by up to 2.7 percent, the cabinet used the power to apply to the January 2017 increase.
A commission dealing with pensions, comprised of experts and members of the parties in parliament, recently recommended that the pension indexation system be changed.
It suggested a steeper rise in pensions. They should increase by a half of the rise in wages, instead of the present one third, and by the growth of pensioners’ living costs instead of all households’ living costs.
The government coalition will discuss the plan in the nearest future. If the government Social Democrats (CSSD), ANO and the Christian Democrats (KDU-CSL) reach consensus on the new model, it could be approved by parliament before the autumn 2017 general election, Prime Minister and CSSD chairman Bohuslav Sobotka said recently.
According to the commission for pensions, 7 percent of Czech pensioners live on the verge of poverty. If the pension indexation system remained unchanged, up to 20 percent of pensioners would be threatened with poverty by around 2030.
