Czech pensions to be raised by 40 crowns

Czech monthly pensions will only be raised by an average of 40 crowns in 2016 as the result of low inflation and a government decision which raised a promised one-off bonus for pensioners from 600 to 900 crowns, Labour and Social Affairs Minister Michaela Marksová said on Friday. Pensioners will get the bonus - to compensate for low pension indexation in recent years – in February 2016 and not in December as was previously expected. Minister Marksová originally proposed to raise pensions higher than set by the law. They were to go up by an average of 205 crowns, or 1.8 percent. The government coalition eventually agreed to raise pensions according to existing legislation and to pay out a one-off bonus before Christmas. The centre-right opposition, however, blocked the fast-track passing of the proposal in the Chamber of Deputies meaning pensioners will get the one-off payment in February.

Author: Jan Velinger