The pension reform is changing the Czech pension system gradually, not all at once. In 2026, higher minimum pensions will take effect, the benefits of calculating new pensions will begin to decrease gradually, and the insurance premium discount for working retirees will continue. Under the law currently in effect, the retirement age for younger generations is gradually increasing to 67.
Quick Overview
- People born after 1965 will have a retirement age that gradually exceeds 65 years.
- For those born after 1988, the retirement age is 67 under the current law.
- Starting in 2026, the growth in newly granted pensions will gradually slow down.
- The minimum old-age pension in 2026 will total 9,800 CZK per month.
- Working retirees are eligible for a 6.5% social insurance discount.
- Child-rearing allowances for already granted entitlements will not be discontinued. For pensions granted starting in 2027, the method for accounting for child-rearing will change.
- Spouses may, under certain conditions, share their assessment bases; however, this change applies only to pensions granted after 2026.
The exact impact of the reform depends on your year of birth, income, periods of insurance coverage, and child-rearing. If the Czech Social Security Administration has not granted you a pension or has calculated it differently than you expected, we can review the decision and the data used for the calculation.
Are you solving a similar problem?
Were you denied a pension even though you're eligible for one?
I want to check my pension
- When you order, you know what you will get and how much it will cost.
- We handle everything online or in person at one of our 6 offices.
- We handle 8 out of 10 requests within 2 working days.
- We have specialists for every field of law.
The Czech state pension system operates primarily on a pay-as-you-go basis. The contributions currently paid by employees, employers, and self-employed individuals are used to fund current pensions. It is therefore not an individual savings plan in which each person would contribute premiums solely to their own personal retirement account.
The pension system reform is primarily a response to the aging population. The number of people of retirement age is growing, while the proportion of the economically active population that finances the system is gradually declining. The goal of the measures adopted is therefore to ensure the long-term sustainability of the pension system, as well as to maintain an adequate level of pensions.
The main piece of legislation remains the Pension Insurance Act. Extensive changes were introduced primarily by an amendment to the Act enacted at the end of 2024. Some of its provisions took effect in 2025, others will first take effect in 2026, and still others will not take effect until later years.
The retirement age is gradually increasing under the current law
Before the reform, the maximum retirement age was set at 65. However, the amendment stipulated its further gradual increase.
For people born after 1965, the retirement age increases by one month for each subsequent year of birth. Thus, under the current law, a person born in 1966 has a retirement age of 65 years and one month. For those born in 1970, it is 65 years and five months.
For people born between 1974 and 1988, the number of months corresponding to the difference between their year of birth and 1973 is added to the age of 65 years and 8 months. For people born after 1988, the retirement age is set at 67 years.
For older age groups, the retirement age may also depend on gender and, for some women, on the number of children they have raised.
Be aware of upcoming changes: In 2026, the Ministry of Labor and Social Affairs announced its intention to return the maximum retirement age to 65. However, this is a proposed amendment that is expected to take effect no earlier than 2028. Until it is approved and enacted, the current retirement age limit of 67 remains in effect.
You can check the exact date of your retirement age using the Czech Social Security Administration’s Pension Information App.
Starting in 2026, the calculation of newly granted pensions will change
One of the main goals of the pension reform is to slow the growth of newly granted pensions. This does not mean that pensions already being paid out will automatically be reduced. The change primarily affects people who have yet to be granted an old-age pension.
The pension amount consists of a base amount and a percentage-based component. The base amount is the same for everyone. The percentage-based component depends primarily on previous earnings and the length of pension insurance coverage.
Starting in 2026, the following changes will be implemented gradually:
- the portion of income counted toward the first reduction threshold will decrease,
- the percentage rate earned for each year of pension insurance will be reduced.
Until now, 100% of income up to the first reduction threshold has been included in the calculation. By 2035, this calculation is set to gradually decrease to 90%. At the same time, the rate for one year of pension insurance is set to gradually decrease from 1.5% of the calculation base to 1.45%.
The changes are being implemented in small steps. Therefore, a person who retires in 2026 will not experience the full final reduction, but only the first part of the gradual adjustment.
Example: Two people with the same income and the same length of insurance coverage may receive different initial pension amounts depending on whether their pension was granted in 2025 or not until 2026. The difference will be relatively small at first, but it will increase in subsequent years.
Pension Indexation in 2026
Pensions already being paid will continue to be adjusted regularly. As of January 2026, the basic pension amount increased by 240 Kč to 4,900 Kč. The percentage increase was 2.6%.
The adjustment applies to old-age, disability, widow’s, widower’s, and orphan’s pensions granted before January 1, 2026.
It is therefore necessary to distinguish between two things:
- the adjustment increases pensions that have already been granted,
- whilethe change in the calculation primarily affects newly granted pensions.
The claim that the pension reform reduces all pensions is therefore misleading. Pensions already being paid will continue to be adjusted, while for new pensions, their initial amount is merely being gradually reduced compared to the previous rules.
The minimum old-age pension increased in 2026
A significant change is the increase in the minimum percentage rate of the pension. Starting in 2026, the minimum percentage rate of the old-age pension is 10% of the average wage. The basic pension amount is also this same percentage.
In 2026, the amounts are as follows:
- the basic amount is 4,900 CZK,
- the lowest percentage rate of the old-age pension is 4,900 Kč,
- the minimum old-age pension will therefore total 9,800 Kč per month.
The same minimum percentage amount of 4,900 Kč also applies to third-degree disability pensions. For other types of pensions, the minimum percentage amounts are set at a lower rate.
The increase does not apply only to people who are applying for a pension for the first time. The Czech Social Security Administration (ČSSZ) is also adjusting previously granted pensions if their percentage amount is lower than the new minimum.
Tip for article
Self-Employed Retirees – How Much Do You Pay, and How Much Will Your Pension Be? You’ll find out in the next article.
Working retirees are eligible for a social security discount
Until the end of 2024, working old-age pensioners could apply for an increase in their pension percentage for every 360 days worked. As of January 2025, this system was replaced by an immediate discount on insurance premiums.
An employee who has reached retirement age and is receiving a full old-age pension may claim a discount equal to 6.5% of their assessment base. In practice, this usually results in a higher net pay.
The discount is not applied automatically without the employee’s cooperation. The employee must provide the employer with proof that:
- they have reached retirement age,
- they are receiving a full old-age pension,
- is entitled to receive it.
Self-employed individuals claim the deduction through their income and expense statement. They will first claim it for the year 2025 in the statement filed in 2026.
In practice, we often see that employees do not submit the required documents to their employer on time and only begin to address the deduction retroactively. This does not automatically void the entitlement. A refund of the overpayment may be requested from the Czech Social Security Administration, provided the legal conditions are met.
The child-rearing allowance does not end, but the rules will change starting in 2027
The child-rearing allowance represents an increase in the percentage rate of the old-age pension for each child raised. For pensions granted by the end of 2026, the current principle of the child-rearing allowance remains in effect.
It is therefore not true that, starting in 2027, only parents of three or more children will automatically be entitled to the child-rearing allowance, and that the amount already granted to others will disappear.
For pensions granted starting in 2027, child-rearing will be taken into account in two ways:
- for the third and each additional child raised, the child-rearing allowance will remain in effect;
- for the first two children, child-rearing will be reflected through a notional “family assessment base.”
The purpose of the family assessment base is to account for the fact that a parent often has no income or earns less while caring for a young child. Therefore, for the purpose of calculating the pension, a statutory income is credited to the parent for a specified period.
This does not cancel any child-rearing allowance previously granted.
Spouses may share assessment bases
The reform introduces the option for spouses to voluntarily share their assessment bases. This is intended primarily to help couples in which one spouse earned significantly less, for example, due to long-term family care responsibilities.
However, this does not involve joint payment of social insurance contributions or a single joint pension. Each spouse will continue to be granted their own old-age pension.
When sharing, the income on which the spouses paid insurance premiums in the relevant years will be divided between them for calculation purposes. This may result in a more balanced amount for their future pensions.
Only spouses may make a joint declaration during the marriage, no later than the day one of them first applies for an old-age pension. Pension sharing applies only if both pensions are granted after 2026.
It is advisable to calculate the implications of this decision in advance. While pension equalization may benefit one spouse, it will reduce the other spouse’s future pension.
Doctoral studies may count toward a pension
As a general rule, studies at a secondary school or university after 2009 are not counted as substitute periods of pension insurance. However, the reform introduced an exception for certain doctoral students.
The first successfully completed doctoral program undertaken as full-time study at a university in the Czech Republic may be counted toward a pension. Only the standard duration of the program is considered, and only studies completed after 2009 are eligible.
Eighty percent of this period is counted toward pension eligibility, similar to certain other substitute insurance periods. Successful completion of the program is a prerequisite.
People in demanding professions can retire earlier
The reform has made it possible for certain people performing jobs classified in the fourth risk category to retire earlier without the standard reduction in benefits.
This does not apply to all physically demanding professions. The decisive factor is the official categorization of the work according to public health regulations, not merely the job title listed in the employment contract.
Employers pay increased insurance premiums for employees performing selected high-risk jobs. The rate increases gradually: in 2025, the increase was two percentage points, and it will continue to rise in subsequent years until reaching the target of five percentage points.
The number of months by which an employee can retire early depends on the number of shifts worked in a high-risk job.
For some other demanding professions, a different approach is used, involving a mandatory employer contribution to retirement savings plans. The scope of eligible professions is among the areas for which the government is preparing further changes in 2026.
The state pension system is supplemented by private products, particularly supplemental pension savings, older supplementary pension insurance, and long-term investment products.
For supplemental pension savings, the old rule—under which participants received a state contribution based on a personal monthly deposit of 300 Kč—no longer applies.
A state contribution is granted for a monthly personal contribution of at least 500 Kč. The amount of the contribution corresponds to 20% of the deposited amount. The maximum state contribution is 340 Kč per month for a deposit of at least 1,700 Kč.
Recipients of old-age pensions no longer receive the state contribution to pension savings. However, if they meet the conditions, they may continue to take advantage of tax benefits on their own contributions.
What to Check in Connection with the Reform
Don’t wait until you apply for retirement. It can be difficult to retroactively prove missing insurance periods or income from decades ago.
We recommend verifying the following in particular:
- whether the Czech Social Security Administration (ČSSZ) has recorded all your employment and self-employment periods,
- whether substitute insurance periods are listed correctly,
- whether you have documented care for children or a close relative,
- whether your doctoral studies are counted toward your pension,
- whether your employer has correctly recorded your work in a high-risk category,
- what your retirement age is,
- whether it is in your best interest to share your assessment bases with your spouse.
You can check this information in the Pension Insurance Periods Overview and in the Pension Information Application on the ČSSZ ePortal.
If anything is missing from the records, it’s best to address it as soon as possible. Employment contracts, pension insurance records, pay stubs, employer confirmations, archived documents, or witness statements can help.
Summary
The 2026 pension reform is gradually changing several key parameters of Czech pensions. Under current law, the retirement age for younger generations is increasing to 67, although the government is considering capping it again at 65. For pensions granted starting in 2026, the growth in their initial amount is gradually slowing, while pensions already being paid continue to be adjusted for inflation. The minimum old-age pension in 2026 is 9,800 Kč. Working seniors are eligible for a 6.5% discount on social insurance contributions. The reform also adjusts child-rearing allowances, introduces a family and shared assessment base, takes certain doctoral programs into account, and allows early retirement for selected workers in high-risk occupations. However, the long-term sustainability of the pension system remains subject to further legislative changes.
Frequently Asked Questions
Has the 2026 pension reform already been approved?
Yes. The main part of the reform was approved in 2024, and the individual measures are taking effect gradually. In 2026, the calculation of newly granted pensions will change for the first time, and new minimum percentage rates will take effect.
Under the reform, will I have to wait until I'm 67 to retire?
It depends on your year of birth. Under the rules in effect in 2026, the age limit of 67 applies to people born after 1988. For those born earlier, the retirement age is being raised gradually.
Will the pension reform reduce pensions that have already been granted?
No. Pensions that have already been granted will not be reduced across the board as a result of the reform and will continue to be adjusted for inflation. The slower rate of growth primarily applies to the calculation of newly granted pensions.
What will the minimum pension be in 2026?
The minimum old-age pension in 2026 totals 9,800 Kč. It consists of a base amount of 4,900 Kč and a minimum percentage amount of 4,900 Kč.
Will parents lose their child-rearing allowance?
Child-rearing allowances that have already been granted will not be discontinued. For pensions granted starting in 2027, child-rearing responsibilities for the first two children will be taken into account through the family assessment base. Child-rearing allowances are to remain in place, particularly for the third and subsequent children.
