The government has approved higher pensions for people over 80 and a bonus for working retirees

One of the main changes is the expansion of the so-called age-based adjustment. Pensions are to be automatically increased upon reaching the age of 80, by 500 crowns per month. The same amount is also to be added upon reaching the ages of 85, 90, and 95, and upon reaching the age of 100, the increase will be 1,000 crowns per month. According to the Ministry of Labor, the measure is intended to address the rising costs of medications, health care, assistive devices, and social services for people of very advanced age. The amendment is also intended to introduce a higher bonus for working retirees: their pension percentage rate is set to increase by 1.5 percent for each year worked. For employees, the recalculation will take place automatically; for the self-employed, it will be based on an application. The first automatic increase for working while retired is expected in January 2028.

However, the proposal has also drawn criticism. The opposition points out that a blanket increase based on age may not best help those who are truly in the most difficult situations, and that it might be more effective to increase care allowances or improve access to social services. Similarly, some economists acknowledge that the government correctly identifies the problem of rising costs for older pensioners but question the chosen approach. In particular, they criticize the across-the-board nature of the measure, the creation of abrupt thresholds every five years, and the rising long-term expenditures. According to the explanatory memorandum, the costs of age-based indexation and the bonus for working retirees are expected to rise gradually from a few billion crowns per year to tens of billions by mid-century. The amendment also includes clarifications to the rules for paying pensions abroad in foreign currency.