Pension

1) Retirement pension

It is always necessary to meet the insurance period and retirement age to be eligible for a pension. For foreigners, it is important to know whether the required insurance periods are accumulated between countries or not. This is based on international agreements. If they have not fulfilled the insurance period in the Czech Republic, they will not be entitled to a pension.

 The right to a retirement pension after 2018 will arise for people who reach retirement age and at the same time obtain the necessary insurance period – 35 years, based on a submitted application. You can still continue your economic activity – employment or business.

Types of retirement pension

Full retirement pension

NThe entitlement arises if the insurance period was acquired in accordance with Czech legislation in the Czech Republic, without taking into account insurance periods abroad.

A regular retirement pension can be obtained when you reach the required retirement age and at the same time have:

• 35 years of service in the Czech Republic including compensatory periods
• 30 years of service in the Czech Republic excluding compensatory periods

Postponed retirement pension can be obtained if you reach an age 5 years higher than the retirement age according to your year of birth and at the same time have:

• 20 years of service in the Czech Republic including compensatory periods
• 15 years of service in the Czech Republic excluding compensatory periods

Partial retirement pension

The claim arises if the insurance period is completed only taking into account insurance periods from other countries (if a valid contract exists).

The following conditions must be met:

• Sum of insurance periods in the Czech Republic + insurance periods in another state = 35 years
• Years worked in another state are added only if a contract has been concluded between the states. Overview of concluded contracts HERE.
• The addition of worked periods works between EU states.

If you do not meet the above conditions, you are entitled to retire at 65 years of age if you receive a disability pension. If you meet the conditions for a disability pension, you are entitled to apply for an old-age pension if you have reached retirement age. It is important not to confuse disability with disability pension. The CSSA may approve your disability, but you may not meet the conditions for a disability pension. Therefore, it is necessary to meet these conditions.

The retirement age can be found HERE.

Základní pojmy

• Doba pojištění = „odpracovaná doba“ –  doba, po kterou jste pracovali a bylo řádně odváděno pojištění (ať už jako zaměstnanci nebo OSVČ).
• Náhradní doba pojištění = doba pojištění, kdy jste nevydělávali a která se do důchodového pojištění pro nárok na důchod započítává jen částečně. Jedná se například o péči o dítě, péči o závislou osobu, studium před rokem 2010 a to pokud trvalo alespoň jeden rok. Vždy třeba přihlédnout k individuálnímu případu.
• Důchodové pojištění = součást systému sociálního pojištění, odvádí jej zaměstnavatel, OSVČ jej odvádí povinně sami.
• ČSSZ = Česká správa sociálního zabezpečení. Zabývá se důchodovým, nemocenským pojištěním, také působí v oblasti lékařské posudkové služby atd. Spadají pod ní PSSZ = Pražská správa sociálního zabezpečení a OSSZ = Okresní správa sociálního zabezpečení.

Basic terminiology

• Insurance period = “worked time” – the time during which you worked and insurance was properly paid (whether as an employee or self-employed person).
• The insurance period can be supplemented by employment, self-employment, or by paying voluntary pension insurance.
• If you are employed, your employer pays it on your behalf. If you are self-employed, you pay it yourself.
• Working without a contract – no insurance is paid into the system, meaning the years are not counted!
• Earnings under 10,000 CZK/month with a Work Agreement (DPP) – the employer is not required to pay social insurance on your behalf, and this period is not counted towards the pension insurance system.
• With a Work Agreement (DPČ), the employer pays social insurance if your salary specified in the contract is higher than 2,499 CZK per month.
• Once a year, you can request from the Czech Social Security Administration (ČSSZ) to send you an informational personal pension insurance statement – this will show you how many years of insurance are counted towards your pension.

Application

• If you want to receive a retirement pension, you need to apply. The pension application is submitted to the Czech Social Security Administration (ČSSZ) no earlier than 4 months before the requested pension. List of offices HERE.
• The pension application can be submitted 5 years in advance.
• What documents are required for the pension application can be found HERE. To apply for a pension with an international element, you must order online; you cannot apply without ordering.

Amount of pension

• The amount of pension for foreigners cannot be determined in advance, even as an approximation – there is no calculator for foreigners.
• Pensions will be reduced in the future, which is why the state supports pension savings – it is recommended that citizens save for their pension themselves.
• After becoming entitled to an old-age pension, you can work and thereby increase your future pension.
• Pensions for self-employed persons may be lower because the calculated minimum advances are lower than those paid by the employer for employees.

2) Early retirement

The conditions for entitlement to early retirement are:

• Sufficient insurance period – from 2024 it is 40 years including replacement periods.
• Retirement age:
  • If you are eligible for regular retirement later than 63 years of age, you can retire at any time after the age of 60.
  • If you are entitled to an old-age pension at 63 years of age, you can retire early up to 3 years earlier.
  • The period of early retirement is gradually extended up to 5 years. If your retirement age is at least 63 years, you can retire 5 years earlier. However, not before reaching the age of 60.

Work and early retirement

You can earn extra money, but to a limited extent. You can only earn extra money if you are not required to pay social insurance from the money you earn.

• Agreement on performing work – earnings up to 10,000 CZK per month
• Agreement on low-income work
• Business with low profit
• Occasional activity with low income
• Rental

Early retirement can be interrupted, and it is possible to work in a larger capacity afterward, with social insurance contributions being paid (e.g., employment contract, higher earnings on a work agreement, etc.). Once the retirement age is reached, there are no restrictions on working.

Early retirement is permanently reduced – it will remain lower even after reaching the eligibility for the regular old-age pension. It cannot be claimed retroactively.

You submit the application yourself to the CSSA, contacts HERE. More detailed information on when it is possible to retire early can be found HERE.

3) Widow’s pension

Temporary widow’s pension

Paid for one year. You will meet the conditions for entitlement to a widow’s/widower’s pension if your spouse died at a time when:

• Received an old-age pension
• Received a disability pension
• At the time of death, the spouse was entitled to an old-age or disability pension
• Died as a result of an accident
• Was entitled to early retirement

Permanent widow’s pension

You are entitled to it if you meet the conditions for a temporary widow’s/widower’s pension and at the same time:

• You are caring for a dependent child
• You are caring for a parent who lives with you in the household
• You are fully disabled
• You have reached retirement age for old-age pension or at least retirement age for widow’s pension – the retirement age for permanent widow’s/widower’s pension is 4 years lower than the retirement age

It can be paid out five years in retrospect.

An application must be submitted to the CSSA.

This pension does not restrict gainful employment in any way.

Entitlement to the pension ends if you remarry, on the day of the new marriage. This must be reported to the CSSA!