Around 195,000 retirees in the Czech Republic continue to work, with the majority employed as workers and the rest operating as sole traders or under agreements, according to data from the Ministry of Labour and Social Affairs (MPSV). Notably, nearly 99,200 of these working pensioners are over the age of 67, making up half of the total. The number of retirees in the workforce reached its peak in 2019, with 219,500 individuals, before declining during the COVID-19 pandemic. In 2022, the labor department recorded 194,566 working pensioners, including 163,543 employees and the remainder as self-employed or working under agreements. About 3,200 individuals combined their employment with freelance work or agreements. Starting next year, working pensioners will no longer be required to pay pension contributions, a measure introduced as part of the government’s pension reform. This change will leave an additional 6.5% of their earnings in their wallets. For a pensioner earning CZK 20,000 gross, this translates to CZK 15,600 annually in extra income, while those earning CZK 40,000 gross would save CZK 31,200 annually. This measure, aimed at incentivizing employment among retirees, is expected to reduce state revenues by approximately CZK 4 billion per year. However, the ministry believes the resulting increase in workforce participation and tax revenues will offset the loss. The Czech retirement age is gradually rising, currently increasing by two months annually for men and four to six months for women. It is expected to reach 65 years by the 2030s. The pension reform envisions further increases, with the retirement age extending by one month per year until it caps at 67 years after five decades. This gradual shift has sparked debate, with critics arguing that many people may not be able to work until such an advanced age. The opposition party ANO has pledged to reverse parts of the reform if it gains power in the next elections. In 2022, nearly three-quarters of working pensioners were over the age of 65. Among them, approximately 53,900, or 28%, were aged 70 or older. Meanwhile, workers aged 64 and 65 numbered 25,700 and 24,200, respectively. According to the Czech Statistical Office, the total number of working pensioners has steadily risen. The 2021 census revealed that 565,800 retirees were employed, accounting for nearly 11% of the workforce. This figure includes both old-age and disability pension recipients, more than double the number recorded in 2011. The removal of pension contributions for retirees represents a shift in how the state supports working pensioners, replacing small periodic pension increases previously granted for continued employment. The government hopes this change will encourage more retirees to remain in or return to the workforce, thereby boosting economic activity. Source: MPSV and CTK