Retirement pensions might improve by a median of 356 crowns from January. The precise quantity will nonetheless be calculated in line with the event of wages. The solidarity fastened a part of the pension must be elevated by 290 crowns for everybody, and the benefit proportion a part of the pension ought to improve by 0.4 p.c. Labor Minister Marian Jurečka (KDU-ČSL) introduced this at a press convention right this moment. In response to him, valorization would require 12.2 billion crowns subsequent 12 months.
In whole, about 705.9 billion crowns could possibly be paid out for pensions. Roughly 2.85 million individuals obtain a pension from the Czech Social Safety Administration (ČSSZ). One other tens of hundreds of pensions are paid by the programs of the departments of defence, inside and justice.
“The common old-age pension will improve subsequent 12 months and exceed the edge of 21,000 crowns. The common quantity subsequent 12 months shall be 21,078 crowns. Now in June, the typical quantity of the pension is 20,708 crowns,” stated the minister.
The pension consists of two components. The solidarity fastened quantity is identical for everybody and corresponds to 10 p.c of the typical wage. This 12 months it quantities to 4,400 crowns. In response to Jurečka, it ought to rise from January by 290 crowns to 4,690 crowns. The benefit proportion then displays the quantity of earnings, years labored and the variety of raised kids.
In response to the minister, it might improve by 0.4 p.c from January. Nonetheless, this quantity wouldn’t be adjusted for individuals who took early retirement after October of final 12 months and don’t but have the right retirement age. Solely the solidarity half ought to improve.
Valorization of pensions is calculated from the typical wage
The pension improve is calculated from the typical wage, the typical old-age pension, the rise in costs for pensioners’ households and the rise in actual earnings. The rise within the shopper worth index over the past 12 months from the start of final July to the top of this June, the typical pension for June or the anticipated common wage for the subsequent 12 months are taken under consideration. In response to Jurečka, the rise in costs for pensioner households throughout the monitored interval reached 1.7 p.c.
Pension calculators for e15
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About 705.9 billion crowns ought to go to pensions subsequent 12 months. Of this, 12.2 billion crowns shall be wanted for the rise. In response to estimates, the pension insurance coverage system ought to stay in deficit. Subsequent 12 months, in line with the calculations up to now, it ought to quantity to about 18.3 billion crowns, the minister stated.
This 12 months, on the finish of the primary quarter, the CSSS supplied 2.37 million old-age pensions, 411,500 incapacity pensions and 65,100 widow, widower and orphan pensions. The common retirement pension in June was 20,704 crowns. Retirement pensions from the programs of the Departments of the Inside, Justice and Protection are a number of thousand greater.
VIDEO: We are going to both pay greater taxes or retire later. It is easy, says economist Matějka in this system FLOW
Interview for the FLOW program with economist Filip Matějka about pensions • e15
