Senate committee rejects controversial pensions bill

The Senate’s Constitutional Law Committee today rejected the lower indexation of pensions for June. The reasons for this included the controversial approval of the government pension amendment by the Chamber of Deputies using a fast-track procedure.

Under the government-proposed amendment, the average monthly pension will rise by CZK 760 instead of the expected CZK 1,770. The government says limiting the pension increase during indexation set for June is necessary to stabilise the public finances and will save CZK 19.4 billion this year alone.

The Senate vote is due to take place on Wednesday. In order for the bill to take effect this year, it needs to be signed into law by the president by March 22.