Pension in the Czech Republic and Austria: the size of the average and minimum.

Pension in the Czech Republic and Austria: the size of the average and minimum.
Pension is the main type of provision of elderly people by the government in any country. The government of most European countries is trying hard to solve the problems of pension payments, thereby expressing its own concern for the older generation.
Today, we will review with you the main provisions that affect the formation of a pension in the Czech Republic, and also tell you how it is paid to emigrants (including Russians).
Until 31.12.2015 on the territory of the Czech state worked a pension system, which consisted of three levels:
A joint system with pension insurance is mandatory. All processes take place at the state level. The insurance system is a memory type. Pension provision on a voluntary basis and on a non-state level.
Since 2016, the second level has ceased to work and new legislative projects have been put in place. All innovations were intended to stimulate the population to use the tools of the third type of pension system. Prior to this, the ways in which the state would provide insurance were also identified. These include:
Reduction of the tax base for the amount of additional insurance. State subsidies.
All these innovations began their work from the beginning of 2017.
In the country, the government managed to create a quality pension structure. This is confirmed by numerous research organizations. Natixis noted that the system in question in the Czech Republic is the most effective and safe in the world.
In authoritative ratings the Czech Republic occupies an honorable 15th place out of 150 competitors. The Republic managed to outrun the following countries:
What kind of pension is paid in the Czech Republic.
The state annually pays for the payment of pensions about 8 percent of GDP. This indicator is much smaller than in France, Germany and other countries. The result is that residents receive one of the lowest pensions. This becomes obvious when compared with developed countries.
In 2016, the average payment amount was 11,343 kroons. In comparison with 2015, the amount was increased by 40 kroons. This increase was due to the good state of the economy in the Czech Republic at the macro level. In addition, the government decided to accrue benefits to all pensioners, which is carried out on an ad hoc basis. Its amount is 900 kroons.
Who can expect to retire in the Czech Republic.
The person who has performed a number of compulsory actions can count on receiving monthly payments in the republic:
Payment of deductions for pension insurance for 25 years. The age corresponds to the established legislation for retirement. Payment of pension contributions for 15 years.
01.01.2010 the amendments were introduced in accordance with the law No. 306/2008, aimed at a consistent increase in the time for payment of insurance premiums, which are needed for retirement (now it is 35 years).
2012 was marked by an increase in the retirement age, which also caused a wave of resentment among the population.
The formula for calculating pensions.
The amount of the pension is approved by the Ministry of Labor and Social Security. A large number of factors fall into the calculation:
The amount of wages. Presence of academic degrees. Work experience and so on.
The base amount is calculated by deducting 9% of the average wage. The percentage component is calculated from the salary without deduction of taxes – this is 1.5%. If the future pensioner was engaged in entrepreneurial activity, then this indicator could be 1.2%.
In addition to pension payments, residents of the Czech Republic receive a medical policy that fully covers all expenses for treatment. This bonus also allows you to travel once a year to a preventive sanatorium.
The process of pension registration.
Applications for the registration of a pension are taken by the regional department of social security. Submission of documents is carried out to this body at the place of residence. For this you need to collect the following package of securities:
Passport, identification number of the spouse, if he (she) is already a pensioner and receives appropriate payments. Certificates, certificates and diplomas, attesting to the availability of education. An employment contract or a certificate of where the applicant works. If there are children, then it will be necessary to show evidence of their birth. Confirmation from the employer in accordance with paragraph 83 of Law No. 582/1991, as well as the pension insurance registration sheet. If a pensioner was engaged in entrepreneurial activities, then extracts from the emergency list will be needed. In addition, you may need confirmation from the labor exchange if you were registered with the organization. It is important to note that in this certificate there should be complete information about the payments received. Application filled in accordance with the established pattern.
Pension for foreigners in the Czech Republic.
In order for a citizen of a state that is not part of the European Union to receive pension payments in the Czech Republic, an agreement on social security must be signed between the two countries.
Between Russia and the Czech Republic, such a document was signed in 2011. This contract regulates the payment of labor pensions – both for old age, and for disability, and on the occasion of the loss of a breadwinner.
This document also reflects the rules for providing care in connection with diseases, maternity, subsidies for children and so on. Thus, the citizens of Russia who worked or were engaged in business in the Czech Republic may well apply for a pension. The amount of payments will be determined on the basis of the norms of the state where the required length of service was obtained, and accrual according to the laws of the country where the citizen lives.
Let’s look at an example:
A citizen of Russia has an experience of 30 years, of which he has worked for 10 years in the Russian Federation, and 20 years in the Czech Republic. In this case, it is the Czech Republic that determines what kind of pension this person is entitled to.
In this case, the pensioner will be able to receive a pension from two sources. Each party will pay the part that corresponds to the working experience of this person. These are the so-called partial pensions.
A citizen of the Russian Federation can file an application for a pension in social security institutions at the place of residence. In each case, the employee asks for various documents, but the foreigner will need the following package:
A photocopy of the work book. A copy of the documents on education. A certificate from the social security agencies of Russia on the accrued pension and on the time for which the payments were made. The document on the removal of a pensioner from the account in the Russian Federation.
Summarizing the article, we note that in the Czech Republic, both native residents and foreigners can receive a pension. If you have a working experience in this state, it is quite possible to receive social benefits.

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