Government approves pension reform bill

The government has approved changes to the pension system proposed by the Ministry of Labour and Social Affairs. The proposal envisages a gradual increase in the retirement age linked to a higher life expectancy, a different basis for calculating old-age pensions, a lower indexation of pensions and a minimum pension amounting to 20 percent of the average wage. Most of the changes would affect people born after 1966. The present retirement age is 65 for both men and women.

According to Labour Minister Marian Jurečka the reform is necessary for the sustainability of the pension system. However the opposition ANO party is critical of the planned changes and has said that if it wins the 2025 general elections and gets to form a government it will abolish them. Trade unions and associations of disabled and senior citizens are also opposed to the reform.