The average retirement pension in the Czech Republic is set to rise by between 656 and 672 crowns starting January, according to recent estimates from the Ministry of Labor and Social Affairs. Based on inflation data for retiree households collected in June, the average pension is expected to reach nearly 21,850 crowns.

Minister Marian Jurečka of the KDU-ČSL party emphasized that the current figure represents a qualified estimate, with the precise amount to be confirmed in early September. This increase will affect not only retirement pensions but also survivor’s and disability benefits.

Ministry spokesperson Kateřina Procházková explained that this adjustment represents a standard January valuation calculated based on price growth data for retiree households. While pensions typically increase both with inflation and by one-third of real wage growth, the latter component is not expected to influence the January valuation as “the decline from previous years has not yet been compensated for”.

It’s worth noting that pension growth parameters were modified as part of the 2024 pension reform, reducing the real wage growth component from one-half to one-third. Experts had previously pointed out that due to recent high inflation, this parameter would not play a significant role in valuations for several years.

The National Budget Council recently published its own estimate, projecting an increase of 649 crowns to reach 21,701 CZK, based on average retirement pension figures from the first quarter. During this period, the Czech Social Security Administration was distributing pensions to more than 2.8 million people, including 2.53 million retirement pensioners and over 415,000 disability recipients.