Changes to the state contribution in the third pension pillar
Changes to the contribution in the 3rd pillar
The state contribution will be due only from a monthly contribution of at least CZK 500 and will amount to 20% of the participant's contribution. The maximum state contribution will increase from CZK 230 to CZK 340. This amount will be reached by those who save at least CZK 1,700 or more per month.
At the same time, as of 1 July 2024, the state contribution to participants who have been granted a retirement pension will end. The Ministry of Finance justifies this step by the fact that the purpose of the third pension pillar is to generate savings for retirement. Once the participant reaches retirement age, the state support loses its purpose, which is primarily to motivate the participant to set aside money for retirement.
In addition, the minimum savings period is extended from 60 months (5 years) to 120 months (10 years) and the age of 60 years (applies to new contracts concluded after 1 January 2024).
Authors:
Blanka Knedlová, Payroll Accountant, HR & Payroll Services
Martina Farářová, Manager, HR & Payroll Services