Changes proposed by the government in the pension system

Changes proposed by the government in the pension system

Government proposed changes in the pension system

Pensioners, seniors – illustrative photo.

Prague – The pension system will gradually undergo a number of changes starting next year. Most of them inhibit the growth of expenses, but some increase them. The government's proposal includes the following steps:

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1) retirement age – set every year for people aged 50 according to the development of life expectancy so that they spend an average of 21.5 years in retirement

2) guaranteed pension – 20 percent of the average wage – 10 percent of the basic amount as now and an increase of the minimum merit portion from 770 crowns to 10 percent of the average wage

3) lower new pensions< /strong>– taking into account a smaller part of the earnings after adjusting the so-called reduction thresholds for calculating the amount

4) slower valorization – instead of adding inflation and half of the growth in real wages, increasing it by inflation and a third of the growth in real wages as until 2017, maintenance of regular increases from January

5) limitation of early pensions – a maximum of three years before the deadline, greater reduction of the amount received than before, limitation of valorization until the regular retirement date

6) earlier pensions for demanding professions – for professions without the possibility of mitigating health impacts with aids, higher employer contributions

7) gradual increase in contributions for self-employed persons (OSVČ) – gradual increase of the minimum basis for contributions from a quarter of the average wage to the level of the minimum wage, further negotiations on a slight increase in the basis from the current half of the profit

8) adjustment of the contributions of so-called contract workers – work records upon agreement, adjustment of earnings limits for payment of levies and summing up of income from multiple agreements

9) joint basis of spouses for pension calculation – voluntary sharing of levies for the duration of the marriage or partnership and during the calculation pensions, dividing them in half

10) taking care of children into account – for the time of caring for young children, take into account fictitious deductions from the national average wage when calculating the pension, the pension could thus be higher in an average of 500 crowns

11) relaxation of conditions for widow and widower pensions