Starting Thursday, senior citizens and disabled pensioners in the Czech Republic can expect a significant increase in their monthly pensions, aimed at combating the effects of inflation. This extraordinary valorization, effective from June 1st, will result in an average increase of several hundred korun for pensioners.

The pension percentage will rise by 2.3%, accompanied by a fixed amount of 400 korun. Jitka Drmolová, the spokesperson for the Social Security Administration, confirmed that this valorization would lead to an average increase of 755 korun for old-age pensions. As a result, the average amount of a single old-age pension will rise from 19,461 to 20,216 koruna.

It is worth noting that the planned increase was initially higher. However, the government revised the valorization formula due to concerns about rising pension expenses. This decision has been challenged by the opposition party ANO, who filed a complaint with the Constitutional Court. The court is currently reviewing the case, and no decision has been reached yet.

The pension increase applies not only to old-age pensions but also to disability and survivor’s pensions. The Social Security Administration has already commenced the process of notifying pensioners about the specific amount of their increased pensions. Initially, these notifications are being sent through data boxes, with subsequent delivery through the Czech Post.

Furthermore, accident-related disability pensions, which compensate for lost earnings resulting from work-related accidents or occupational diseases, will also see an increase. However, it is important to note that these payments are administered by commercial insurance companies rather than the Social Security Administration.

The June pension increase applies to all individuals whose pensions were granted by the end of May. For those whose entitlement is recognized and pensions calculated after that date, the increase will be effective from the day of recognition. It is estimated that tens of thousands of individuals fall into this category.

However, the Social Security Administration has faced challenges in processing pension claims in recent months. More than 22,000 people have been waiting for over three months since submitting their applications, surpassing the legal deadline. This delay not only impacts pension payments but also affects the payment of health insurance contributions on their behalf.

Prime Minister Petr Fiala, acknowledging the unreasonable situation, has apologized for the delay and lack of pension payments. The government, along with Minister of Labor and Social Affairs Marian Jurečka, is actively working to address the issue. Short-term measures are being implemented to prioritize those at risk of social and legal endangerment.

Fiala attributed the situation to an unexpected surge in demand for early retirement and childcare payments, as well as a lack of digitalization within the department. Efforts are underway to strengthen the workforce, provide training to handle exceptional cases, and collaborate with health insurance companies to simplify processes. The Social Security Administration defended its handling of other administrative matters, assuring that no issues exist in those areas.

Article by Prague Forum