Coalition agrees to raise old age pensions and children’s allowance

The parties of the ruling minority coalition, ANO and the Social Democrats, on Monday agreed to raise old age pensions by 900 crowns a month as of January 2020.

This is perceived as a victory of the Social Democrats who vehemently opposed the 750 crown hike proposed by Finance Minister Alena Schillerová from ANO. Nevertheless the finance minister has stressed that the extra money spent on pensions will have to be saved elsewhere.

The two parties also agreed to raise the children’s allowance from 220,000 to 300,000 crowns. Altogether the hikes should increase state expenditures by 11 billion crowns next year.