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Czech Republic
| Total population (m.): | 10.4 |
| GDP per capita (USD): | 24144 |
Old Age, Disability and Survivors
Regulatory Framework
First laws: 1906 (salaried employees) and 1924 (wage earners).
Current law: 1995 (Pension Insurance Act No. 155), implemented in 1996, with 2002 (Act No. 264), 2003 (Act No. 424 and Act No. 425) and 2008 amendments.
Type of program: Social insurance system.
Current law: 1995 (Pension Insurance Act No. 155), implemented in 1996, with 2002 (Act No. 264), 2003 (Act No. 424 and Act No. 425) and 2008 amendments.
Type of program: Social insurance system.
Coverage
Employed and self-employed persons, including students, unemployed persons, persons caring for children, needy persons, and military personnel.
Voluntary coverage for unemployed persons and students not compulsorily covered by the 1995 law, persons employed abroad, and persons performing certain kinds of volunteer work. Other persons older than age 18 may voluntarily insure for a maximum of 10 years.
Voluntary coverage for unemployed persons and students not compulsorily covered by the 1995 law, persons employed abroad, and persons performing certain kinds of volunteer work. Other persons older than age 18 may voluntarily insure for a maximum of 10 years.
Source of funds
Insured person: 6.5% of monthly covered earnings.
The maximum annual earnings for contribution calculation purposes are 72 times the national average monthly wage.
Voluntary contributors pay at least 25% of the national average monthly wage.
The national average monthly wage is 25,752 koruna (4th quarter of 2009).
Self-employed person: 28% of declared monthly covered earnings; a flat-rate of 5,928 koruna if declared earnings for full-time work are less than 25% of the national average monthly wage.
Declared earnings are 50% of the difference between income and expenses. The minimum declared earnings for a part-time self-employed person are 10% of the national average monthly wage.
The maximum annual earnings for contribution calculation purposes are 72 times the national average monthly wage.
The national average monthly wage is 25,752 koruna (4th quarter of 2009).
Employer: 21.5% of monthly payroll.
The maximum annual earnings for contribution calculation purposes are 72 times the national average monthly wage.
The national average monthly wage is 25,752 koruna (4th quarter of 2009).
Government: Any deficit.
The maximum annual earnings for contribution calculation purposes are 72 times the national average monthly wage.
Voluntary contributors pay at least 25% of the national average monthly wage.
The national average monthly wage is 25,752 koruna (4th quarter of 2009).
Self-employed person: 28% of declared monthly covered earnings; a flat-rate of 5,928 koruna if declared earnings for full-time work are less than 25% of the national average monthly wage.
Declared earnings are 50% of the difference between income and expenses. The minimum declared earnings for a part-time self-employed person are 10% of the national average monthly wage.
The maximum annual earnings for contribution calculation purposes are 72 times the national average monthly wage.
The national average monthly wage is 25,752 koruna (4th quarter of 2009).
Employer: 21.5% of monthly payroll.
The maximum annual earnings for contribution calculation purposes are 72 times the national average monthly wage.
The national average monthly wage is 25,752 koruna (4th quarter of 2009).
Government: Any deficit.
Qualifying conditions
Old-age pension: Age 62 and 2 months with at least 26 years of coverage (men); age 60 and 8 months with at least 26 years of coverage (women), or less according to the number of children reared; age 65 (men and women) with at least 15 years of coverage. (The retirement age and required years of coverage are gradually increasing until reaching age 65 (men and women) in 2030, with at least 35 years of coverage.)
Persons who receive the old-age pension at the normal retirement age may continue in gainful activity.
Early pension: Retirement is possible up to 3 years before the normal retirement age with at least 26 years of contributions. All employment must cease.
Gainful activity must cease for persons receiving the early pension.
Deferred pension: The pension may be deferred. There is no age limit.
Old-age pensions are payable abroad.
Disability pension: Paid for a total disability (70% loss of earning capacity) or partial disability (from 50% to 69% loss of earning capacity). The insured must have a minimum period of coverage according to the insured's age when the disability began: less than 1 year of coverage if younger than age 20; 1 year if aged 20 to 21; 2 years if aged 22 to 23; 3 years if aged 24 to 25; 4 years if aged 26 to 27; 5 years in the last 10 years from age 28 to 38; 10 years in the last 20 years for those older than age 38.
Czech Social Security Administration assesses the degree of disability.
Disabled from youth pension: The full disability pension is paid if the disability began before age 18.
District administrations assess the degree of disability for individuals whose disability began before age 18.
Total disability and partial disability pensioners may engage in gainful activity; the partial disability pension is subject to an earnings test.
Disability pensions are payable abroad if all gainful activity has ceased.
Survivor pension: The deceased qualified for a pension, was a pensioner at the time of death, or died as a result of a work injury or an occupational disease.
Eligible survivors include the spouse and children up to age 26. The surviving spouse must have been married to the deceased.
The widow(er)'s pension ceases on remarriage.
Survivor pensions are payable abroad.
Funeral grant: Paid for the funeral of a dependent child or his or her parent.
Persons who receive the old-age pension at the normal retirement age may continue in gainful activity.
Early pension: Retirement is possible up to 3 years before the normal retirement age with at least 26 years of contributions. All employment must cease.
Gainful activity must cease for persons receiving the early pension.
Deferred pension: The pension may be deferred. There is no age limit.
Old-age pensions are payable abroad.
Disability pension: Paid for a total disability (70% loss of earning capacity) or partial disability (from 50% to 69% loss of earning capacity). The insured must have a minimum period of coverage according to the insured's age when the disability began: less than 1 year of coverage if younger than age 20; 1 year if aged 20 to 21; 2 years if aged 22 to 23; 3 years if aged 24 to 25; 4 years if aged 26 to 27; 5 years in the last 10 years from age 28 to 38; 10 years in the last 20 years for those older than age 38.
Czech Social Security Administration assesses the degree of disability.
Disabled from youth pension: The full disability pension is paid if the disability began before age 18.
District administrations assess the degree of disability for individuals whose disability began before age 18.
Total disability and partial disability pensioners may engage in gainful activity; the partial disability pension is subject to an earnings test.
Disability pensions are payable abroad if all gainful activity has ceased.
Survivor pension: The deceased qualified for a pension, was a pensioner at the time of death, or died as a result of a work injury or an occupational disease.
Eligible survivors include the spouse and children up to age 26. The surviving spouse must have been married to the deceased.
The widow(er)'s pension ceases on remarriage.
Survivor pensions are payable abroad.
Funeral grant: Paid for the funeral of a dependent child or his or her parent.
Cash benefits for insured workers (except permanent disability)
Old-age pension: The monthly pension consists of a flat-rate monthly amount of 2,170 koruna and an earnings-related amount of 1.5% of the personal assessment base per year of coverage.
The personal assessment base is based on average gross earnings in the 10 years before retirement. This period is extended by 1 year each year until it reaches a total of 30 calendar years. Covered earnings are indexed to the average wage.
If the personal assessment base is greater than 10,500 koruna, earnings for pension calculation purposes are considered as follows: 100% of earnings up to 10,500 koruna; 30% of earnings from 10,500 koruna to 27,000 koruna; and 10% of earnings greater than 27,000 koruna.
The minimum monthly old-age pension is 2,940 koruna, equal to the flat-rate amount plus 770 koruna.
Early pension: The pension is reduced by 0.9% for each 90-day period the pension is received before the normal retirement age. This reduction is permanent and continues after the recipient reaches the normal retirement age.
Deferred pension: The pension is increased by 1.5% of the personal assessment base for each 90-day period of gainful activity during which the claim for an old-age pension is deferred.
Benefit adjustment: Benefits are adjusted every January according to at least 100% of the change in the consumer price index in the 12-month period before the previous July and by at least 33.3% of average real wage growth in the 12-month period before the previous January. Further adjustments are made when the consumer price index changes by at least 5%.
The personal assessment base is based on average gross earnings in the 10 years before retirement. This period is extended by 1 year each year until it reaches a total of 30 calendar years. Covered earnings are indexed to the average wage.
If the personal assessment base is greater than 10,500 koruna, earnings for pension calculation purposes are considered as follows: 100% of earnings up to 10,500 koruna; 30% of earnings from 10,500 koruna to 27,000 koruna; and 10% of earnings greater than 27,000 koruna.
The minimum monthly old-age pension is 2,940 koruna, equal to the flat-rate amount plus 770 koruna.
Early pension: The pension is reduced by 0.9% for each 90-day period the pension is received before the normal retirement age. This reduction is permanent and continues after the recipient reaches the normal retirement age.
Deferred pension: The pension is increased by 1.5% of the personal assessment base for each 90-day period of gainful activity during which the claim for an old-age pension is deferred.
Benefit adjustment: Benefits are adjusted every January according to at least 100% of the change in the consumer price index in the 12-month period before the previous July and by at least 33.3% of average real wage growth in the 12-month period before the previous January. Further adjustments are made when the consumer price index changes by at least 5%.
Permanent disability benefits for insured workers
Disability pension: The monthly full disability pension consists of a flat-rate monthly amount of 2,170 koruna and an earnings-related amount of 1.5% of the personal assessment base per year of coverage. The projected coverage period is credited from the date the disability began up to the normal retirement age.
The personal assessment base is based on average gross earnings in the 10 years. This period is extended by 1 year each year until it reaches a total of 30 calendar years. Covered earnings are indexed to the average wage.
If the personal assessment base is greater than 10,500 koruna, earnings for pension calculation purposes are considered as follows: 100% of earnings up to 10,500 koruna; 30% of earnings from 10,500 koruna to 27,000 koruna; and 10% of earnings greater than 27,000 koruna.
Partial disability: The monthly benefit is equal to the flat-rate amount (2,170 koruna) plus 0.75% of the personal assessment base for each year of coverage.
Disabled from youth pension: The monthly full disability pension consists of a flat-rate monthly amount of 2,170 koruna and an earnings-related amount of 45% of the annual general assessment base. The annual general assessment base is calculated using the national average monthly wage.
The national average monthly wage is 25,752 koruna (4th quarter of 2009).
Benefit adjustment: Benefits are adjusted every January according to at least 100% of the change in the consumer price index in the 12-month period before the previous July and by at least 33,3% of average real wage growth in the 12-month period before the previous January. Further adjustments are made when the consumer price index changes at least 5%.
The personal assessment base is based on average gross earnings in the 10 years. This period is extended by 1 year each year until it reaches a total of 30 calendar years. Covered earnings are indexed to the average wage.
If the personal assessment base is greater than 10,500 koruna, earnings for pension calculation purposes are considered as follows: 100% of earnings up to 10,500 koruna; 30% of earnings from 10,500 koruna to 27,000 koruna; and 10% of earnings greater than 27,000 koruna.
Partial disability: The monthly benefit is equal to the flat-rate amount (2,170 koruna) plus 0.75% of the personal assessment base for each year of coverage.
Disabled from youth pension: The monthly full disability pension consists of a flat-rate monthly amount of 2,170 koruna and an earnings-related amount of 45% of the annual general assessment base. The annual general assessment base is calculated using the national average monthly wage.
The national average monthly wage is 25,752 koruna (4th quarter of 2009).
Benefit adjustment: Benefits are adjusted every January according to at least 100% of the change in the consumer price index in the 12-month period before the previous July and by at least 33,3% of average real wage growth in the 12-month period before the previous January. Further adjustments are made when the consumer price index changes at least 5%.
Survivors benefits for dependents
Survivor pension: The widow(er) receives a monthly flat-rate amount of 2,170 koruna plus 50% of the earnings-related amount paid to the deceased. The pension is paid to all widow(er)s for 1 year; thereafter, only to widows aged 56 or older or widowers aged 58 or older; any age if disabled or caring for a dependent or disabled child or a disabled parent.
The minimum monthly survivor pension for a widow(er) is 2,555 koruna, equal to the flat-rate amount (2,170 koruna) plus 385 koruna.
Remarriage grant: The widow(er) pension ceases on remarriage and a lump sum is paid of 12 times the last monthly pension.
Orphan's pension: A monthly flat-rate amount of 2,170 koruna plus 40% of the earnings-related amount paid to the deceased is paid to each dependent child. For full orphans, the flat-rate amount is paid for one parent plus 40% of the sum of the earnings-related amount paid to both parents.
The minimum monthly orphan's pension is 2,478 koruna, equal to the flat-rate amount (2,170 koruna) plus 308 koruna.
If the survivor is also entitled to an old-age or disability pension, the amount paid is the greater of the two pensions plus half of the earnings-related amount of the other pension (see Old-Age and Permanent Disability Benefits).
Benefit adjustment: Benefits are adjusted every January according to at least 100% of the change in the consumer price index in the 12-month period before the previous July and by at least 33,3% of average real wage growth in the 12-month period before the previous January. Further adjustments are made when the consumer price index changes at least 5%.
Death grant: A lump sum of 5,000 koruna is paid to the person who paid for the funeral.
The minimum monthly survivor pension for a widow(er) is 2,555 koruna, equal to the flat-rate amount (2,170 koruna) plus 385 koruna.
Remarriage grant: The widow(er) pension ceases on remarriage and a lump sum is paid of 12 times the last monthly pension.
Orphan's pension: A monthly flat-rate amount of 2,170 koruna plus 40% of the earnings-related amount paid to the deceased is paid to each dependent child. For full orphans, the flat-rate amount is paid for one parent plus 40% of the sum of the earnings-related amount paid to both parents.
The minimum monthly orphan's pension is 2,478 koruna, equal to the flat-rate amount (2,170 koruna) plus 308 koruna.
If the survivor is also entitled to an old-age or disability pension, the amount paid is the greater of the two pensions plus half of the earnings-related amount of the other pension (see Old-Age and Permanent Disability Benefits).
Benefit adjustment: Benefits are adjusted every January according to at least 100% of the change in the consumer price index in the 12-month period before the previous July and by at least 33,3% of average real wage growth in the 12-month period before the previous January. Further adjustments are made when the consumer price index changes at least 5%.
Death grant: A lump sum of 5,000 koruna is paid to the person who paid for the funeral.
Administrative organization
Ministry of Labor and Social Affairs (http://www.mpsv.cz) provides general supervision and is responsible for policy development for all areas of social security except health insurance.
Ministry of Labor and Social Affairs
Na Porícním právu 1,
128 01 Prague 2,
Czech Republic
Tel.: +(420) 221 921 111
Fax: +(420) 224 918 391 / 221 922 664
Czech Social Security Administration (http://www.cssz.cz) collects and administers contributions and delivers benefits through its central administration and 77 district administrations.
Czech Social Security Administration
Krízová 25,
225 08 Prague 5,
Czech Republic
Tel.: +(420) 257 061 111
Fax: +(420) 257 063 032
Ministry of Labor and Social Affairs
Na Porícním právu 1,
128 01 Prague 2,
Czech Republic
Tel.: +(420) 221 921 111
Fax: +(420) 224 918 391 / 221 922 664
Czech Social Security Administration (http://www.cssz.cz) collects and administers contributions and delivers benefits through its central administration and 77 district administrations.
Czech Social Security Administration
Krízová 25,
225 08 Prague 5,
Czech Republic
Tel.: +(420) 257 061 111
Fax: +(420) 257 063 032
Last survey reply: 01 January 2010
Last ISSA update: 01 January 2010
Exchange rate: US$1.00 equals 18.12 koruna.