[Czech Republic] Significant reduction in gender pension gap

New research has revealed a notable reduction in the Czech Republic’s gender pension gap, Expats.cz reports.

The gap between average male and female pensions was 20 per cent in 2022, it has narrowed to 13 per cent this year, according to data from the Czech Social Security Administration.

This positive step towards gender equality among senior citizens has reportedly been attributed to recent policy changes. The Social Security Administration introduced an additional childcare allowance of 500 crowns per child per month in 2023 which resulted in an automatic increase in pensions for 1.4 million women who raised a total of around three million children.

Currently, about 949,000 men and 1.41 million women receive senior citizen pensions from the Czech Republic's Social Security Administration. The average pension for a man is now CZK 21,520 per month and CZK 19,039 per month for a woman.

From the end of 2022 to mid-2023, the average monthly pension for women increased by CZK 2,554; the additional childcare allowance contributed significantly. For men, the average monthly pension increased by CZK 1,765 crowns.

This reportedly resulted in a decrease in the gender pension gap from roughly 20 per cent at the end of last year to 13 per cent in mid-2023.

However, concerns have reportedly been raised regarding the pace of pension growth in recent years. The current Czech government's attempt to slow down pension growth has been criticised by the opposition, who claim it robs senior citizens. The government argues that pension increases have significantly outpaced inflation.

The Czech Republic's gender pay gap is another contributing factor to the pension gap. Women tend to work in lower-paid sectors and positions and earn around ten per cent less than men in similar roles.

According to research from the Institute of Sociology of the Academy of Sciences of the Czech Republic, about 30 per cent of the country's gender pay gap can be attributed to motherhood and childcare responsibilities.

The reduction in the gender pension gap is an encouraging step, however, experts have highlighted the need for a comprehensive approach to targeting gender-based disparities. Narrowing the country's gender pay gap and improving access to childcare services to enable mothers to work, are both crucial steps.

Additional Czech pension reforms, presented by the government in May, are reportedly intended to integrate the new childcare allowance as a replacement for fictitious social security contributions during periods of childcare.

Source: Expats.cz

(Links via original reporting)

New research has revealed a notable reduction in the Czech Republic’s gender pension gap, Expats.cz reports.

The gap between average male and female pensions was 20 per cent in 2022, it has narrowed to 13 per cent this year, according to data from the Czech Social Security Administration.

This positive step towards gender equality among senior citizens has reportedly been attributed to recent policy changes. The Social Security Administration introduced an additional childcare allowance of 500 crowns per child per month in 2023 which resulted in an automatic increase in pensions for 1.4 million women who raised a total of around three million children.

Currently, about 949,000 men and 1.41 million women receive senior citizen pensions from the Czech Republic's Social Security Administration. The average pension for a man is now CZK 21,520 per month and CZK 19,039 per month for a woman.

From the end of 2022 to mid-2023, the average monthly pension for women increased by CZK 2,554; the additional childcare allowance contributed significantly. For men, the average monthly pension increased by CZK 1,765 crowns.

This reportedly resulted in a decrease in the gender pension gap from roughly 20 per cent at the end of last year to 13 per cent in mid-2023.

However, concerns have reportedly been raised regarding the pace of pension growth in recent years. The current Czech government's attempt to slow down pension growth has been criticised by the opposition, who claim it robs senior citizens. The government argues that pension increases have significantly outpaced inflation.

The Czech Republic's gender pay gap is another contributing factor to the pension gap. Women tend to work in lower-paid sectors and positions and earn around ten per cent less than men in similar roles.

According to research from the Institute of Sociology of the Academy of Sciences of the Czech Republic, about 30 per cent of the country's gender pay gap can be attributed to motherhood and childcare responsibilities.

The reduction in the gender pension gap is an encouraging step, however, experts have highlighted the need for a comprehensive approach to targeting gender-based disparities. Narrowing the country's gender pay gap and improving access to childcare services to enable mothers to work, are both crucial steps.

Additional Czech pension reforms, presented by the government in May, are reportedly intended to integrate the new childcare allowance as a replacement for fictitious social security contributions during periods of childcare.

Source: Expats.cz

(Links via original reporting)