Why is my pension increasing less than others? – House of Finances – calculators, contract samples, tariff, taxes, calculation of net salary

All pensions paid by the state are regularly evaluated from January. Each state pension consists of a basic assessment and a percentage assessment. All pensioners have the same basic amount of pension, and when calculating the percentage amount, it depends on the specific flow of insurance. With regular valorization, the basic pension amount in crowns is increased for everyone equally, and the percentage amount is increased by the corresponding percentage.

  • E.g. from January 2023, the basic amount of the pension was increased by 140 CZK, and the percentage amount by 5.1%. This means that people with high incomes saw their monthly amount increase more than people with low incomes. So you are right that even in valorization people with high incomes are favored.

Practical calculation

Pensioner X with pension 14000 CZK in December 2022, has a monthly pension of 14 from the January assessmentCZK 656 and pensioner Y with pension 28000 CZK in December 2022, has a monthly pension of 29 from the January assessmentCZK 370. Pensioner Y has improved by 1CZK 370 and pensioner X for CZK 656.

Extraordinary valorization in 2022

In 2022, two extraordinary valorizations were carried out, when only the percentage of the pension was increased by the corresponding percentage.

Relevant laws are subject to change

The formula for calculating the valorization depends on the current legislation, which of course can change over the years. Considering the current situation, it is true, as you write, that pensioners with high pensions are progressing more than pensioners with lower pensions due to valuation.

TIP: Average Retirement Salary Calculator

Petr Gola

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