Are you retired and looking forward to January because you’re hoping for an increase in your pension? You have reason to be happy, because from January 2025 all old-age pensions will be valued again. The amounts will increase and the average pension will exceed 21,000 crowns per month. How much will you improve exactly?
Each pension is made up of two parts, namely basic payments and percentage payments. The basic amount, which is the same for all pension recipients, will increase by 260 crowns, so that it will now reach the amount of 4,660 crowns. The percentage amount, which depends on the amount of income during an active working life and the number of years worked, will increase by 0.6%. If someone now receives a pension of 15,000 crowns, their new pension will be approximately 15,324 crowns per month. For a pension of 20,000 crowns, the amount rises to approximately 20,354 crowns.
This valorization does not only apply to retirement pensions. The increase also automatically applies to disability pensions and survivors’ pensions, i.e. widow’s, widower’s and orphan’s pensions. The increased amounts will be paid automatically, so pensioners do not have to submit any applications or go to the authorities. Money with a higher valuation will already appear in the January pension payment.
The regular valorization of pensions aims to compensate for the rise in the prices of goods and services, i.e. inflation. Thanks to it, pensioners should maintain the same purchasing power, even in a situation where the basic necessities of life become more expensive. Valorization is established by law and calculated according to precise rules. The growth of consumer prices and the increase of the average wage in the Czech Republic play a key role.
It increases by default in January
For example, in 2024 pensions were valued several times due to high inflation. This time it is not an extraordinary increase, but a standard January valorization that takes place regularly every year. Even so, this change will bring some relief, especially to those who live only on their pension and have no other income. Every crown counts in the seniors’ budget, whether it’s paying rent, buying medicine or small pleasures they want to indulge in.
The increase in old-age pensions to an average of 21,080 crowns per month means that the Czech Republic continues its efforts to improve the living conditions of its senior citizens. According to the data, pension is the main source of income for the majority of pensioners in the country and therefore its regular valorization is essential for their standard of living.
If you are not sure how exactly the valorization will affect your pension, you can use online calculators that are available on the official website of the Ministry of Labor and Social Affairs. Just enter the amount of your current pension and the calculator will calculate the exact amount after valorization. It’s a simple way to get a clear overview.
Source: mpsv.cz, mvcr.cz
