Benefits

Czech government to increase pensions and parental support

The coalition of government parties have decided to increase pension and parental support from January 2020. The state budget will provide 11 billion CZK to cover this expenditure. This statement means a compromise between center-right ANO and ČSSD (Czech Social Democratic Party).

The Social Democrats, supported by PM Andrej Babiš, have proposed an increase in pension support by 900 CZK and an increase in the parental support for children born before the end of the year. While the first request was successful, the second proposal was rejected.

The increase in the parental allowance from 220,000 CZK to 300,000 CZK will apply only to newly born children. ČSSD chairman Jan Hamáček said, however, that the outcome of the negotiation is a good compromise.

Finance Minister Alena Schillerová stated that there is only a limited amount of money, and if one group gets more money, someone else has to lose some of it. Thus, the approval of both proposals made by the Social Democrats was not realistic.

The increase in pension support will not depend on the number of years spent working but will be distributed equally within the framework of strengthening solidarity. Total expenditure from the state budget will be 7.5 billion CZK.

As an additional topic, the government also discussed the issue of advanced parental support, that will be further discussed in May. Advanced parental support would be paid to mothers, who can´t recover alimony from defaulters. Moreover, the defaulters could be punished by newly suggested means, such as seizure of a firearms pass, or a ban on gambling.

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