Rise in pensions will increase state deficit in 2023

The rise in pensions as a result of the soaring inflation will send the pensions system into a 63 million crown deficit in 2023, Czech Television reported citing the 2023 state budget draft. The fact that the pension system can no longer meet the country’s needs has highlighted the urgent need for reform. In line with the law, the government increased pensions three times this year to make up for the soaring inflation. Labour and Social Affairs Minister Marian Jurečka said recently that the country would most likely not be able to avoid an increase in the retirement age which is now 65. Trade unions are against the idea.