The Ministry of Labour and Social Affairs is trying to support working seniors, who are already receiving a retirement pension. The upcoming change, which is still in the stage of a draft, promises working pensioners a discount on social security premiums from this July.

For seniors, this change would increase net earnings by 6.5%, which corresponds to the amount of premiums paid by the employee. Employed seniors would get a 100% discount on social security premiums, and enterprising seniors would see their premium rate reduced from 29.2% to 22.7%.

Higher net earnings is intended to motivate seniors to stay in employment longer or to continue in business in retirement, which could help alleviate increased labour market demand. At the same time, the discount would bring significant administrative simplification for employers.

Author: Roman Burnus, Anna Beránková