prague, Czech Republic – As the new year unfolds, seniors and minimum wage earners in the Czech Republic can anticipate an uptick in their incomes. January brings a surge in the minimum wage, accompanied by raised guaranteed wages for specific professions. However, this positive financial shift comes with a caveat, as individuals without taxable incomes, such as full-time students and homemakers, may find themselves facing higher health insurance expenses.

Pensioners, including those receiving old-age, invalid, widow, or orphan pensions, will experience a 360-crown increase in January. This boost is attributed to the elevation of the basic pension assessment to 4400 crowns, with no change in the merit percentage part due to prior extraordinary valorization. The average old-age pension is expected to reach 20,635 crowns.

An exception to this general pension increase applies to individuals reaching the age of 85 in January, as their percentage assessment will see a thousand-crown augmentation, a practice also applicable throughout the year for pensioners reaching this milestone.

Simultaneously, the minimum wage is set to rise from 17,300 to 18,900 gross crowns per month from the start of the year, equivalent to a net salary of 16,442 CZK.

While the minimum wage increase brings positive economic implications, it also triggers a surge in health insurance costs for those without taxable incomes. Homemakers, certain university students above 26 years (excluding doctoral students), and the unregistered unemployed, who neither receive insurance payments from the state nor their employers, can expect their health insurance expenses to range from 2336 to 2552 crowns.

Entrepreneurs and self-employed individuals will witness a hike in the minimum advances due to the increase in the average wage. For the main activity, social insurance will amount to 3852 crowns, with an additional 1413 crowns for side activities. Starting a primary activity will require a minimum advance of 3210 CZK, and health insurance costs for the main activity will range from 2722 to 2968 crowns. Notably, no advances are applicable to side activities. The minimum voluntary monthly sickness insurance for 2024 stands at 216 crowns. As the Czech Republic navigates these economic shifts, the adjustments in wages and associated costs mark a dynamic start to the new year.

Article by Prague Forum