The Czech Finance Ministry is drafting a proposal that would see workers in ‘demanding’ professions receiving up to 4 per cent of their gross salary as a third pillar pension contribution from their employers each month, according to the Association of Pension Companies of the Czech Republic.

The proposal comes following the Czech government’s previous pension reform that removed the right to retire early without a reduced pension for certain demanding professions.

To help support those affected, Finance Minister, Zbyněk Stanjura, committed to preparing a proposal to reform the third pillar in Czechia.

The reform, which is being finalised, would result in employers paying workers a monthly contribution to their third pillar pension savings, subject to consultation with employers.

"The employer will contribute up to 4 per cent of the gross wage to the third pillar of the pension system,” commented Stanjura.

“Of course, it is graded according to the number of shifts in a given month. I think that up to 10 or 11 shifts it is 3 per cent, if the person works more than 11 shifts, it is 4 per cent.

“That is the basic message and idea that we agreed on in the coalition."

The Czech Finance Ministry had previously promised the proposal to be completed by the end of 2024, but the proposal is still being discussed in early 2025.

"If we manage to discuss it in the first reading at the February meeting, it is realistic that it could be approved by the end of the first half of this year," Stanjura stated.

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