Czech Pensions to Rise in January 2026 as Social Security Finances Show Mixed Picture

The Ministry of Labour and Social Affairs has confirmed that pensions in the Czech Republic will increase again from January 2026. Old-age, disability and survivors’ pensions will all be adjusted upward in line with statutory valorization rules, based on inflation in pensioner households.

The average old-age pension will grow by 668 crowns per month, reaching 21,839 crowns. The adjustment will consist of a 240-crown rise in the basic pension and a 2.6 percent increase in the percentage-based component. Labour and Social Affairs Minister Marian Jurečka (KDU-ČSL) emphasized the long-term gains for retirees, noting that just ten years ago the average pension was little more than half of what it will be in 2026. He added that overall, during the current government, pensions have risen by 28 percent. According to ministry estimates, pensions since 2016 have risen by about 18 percent more than prices, meaning real purchasing power for retirees has improved significantly over the past decade.

Jurečka said the government’s pension reform is designed to ensure sustainability of the system, guaranteeing that decent pensions can be paid not only to today’s pensioners but also to future generations. He pointed out that the reform will help protect financing as demographic changes increasingly affect the system.

Financial results from the Czech Social Security Administration underline the challenges. From January to August 2025, social security revenues reached 502 billion crowns while expenditures amounted to 500 billion crowns, leaving a surplus of 2.14 billion crowns. Revenues rose by 7.5 percent year-on-year, while expenditures grew by only 0.6 percent. Within the system, however, results were uneven. Pension insurance recorded a deficit of 5.6 billion crowns by August, according to ministry data, while a more detailed breakdown from the Ministry of Finance showed a larger cumulative deficit of about 9.16 billion crowns at the end of August and 10.18 billion crowns by September.

Sickness insurance presented a different picture, ending the January to August period with a surplus of 7.7 billion crowns. This was largely the result of new employee contribution rates, which boosted revenues by 45 percent compared with 2023. Officials highlighted that the overall success rate of insurance payments remains at 99 percent, which they say demonstrates the stability of the system despite uneven performance across its components.

With pensions at their highest level in the country’s history and reforms underway to strengthen long-term sustainability, the January 2026 increase is being presented as both financial relief for pensioners and evidence that the social security system can withstand the pressures of an aging population.