Starting January 2025, working pensioners are entitled to a social insurance discount of 6.5% of their assessment base. This change is part of the pension reform and replaces the previous system of increasing pensions for days worked, which was abolished as of December 31, 2024.

The original system provided only a 0.4% increase for every 360 days worked. The current adjustment is much more advantageous. It represents an immediate increase in net income instead of the minimal pension increase seen in the previous model.

Let’s take a closer look at who the discount applies to, what the conditions are, and how to apply for it correctly.

 

Who is entitled to the discount?

The discount is intended for all working old-age pensioners who meet the following three conditions:

• Have reached retirement age.
• Receive a full old-age pension.
• Are engaged in gainful activity that establishes participation in pension insurance.

 

It can be used by everyone regardless of the type of employment relationship, meaning:

• Employees in an employment relationship,
• Persons working under agreements, if they exceed the limits for insurance contributions,
• Self-employed persons.

 

How much are the savings?

The newly introduced discount amounts to 6.5% of the assessment base, which corresponds to the gross wage for employees. Practically, this means that working pensioners will not pay pension insurance contributions from this part of their income.

And what are the real impacts? Let’s take a simple example: An employee with a gross monthly wage of CZK 30,000 will save almost CZK 2,000 net per month thanks to the discount, which is approximately CZK 24,000 per year.

 

The deadline for applying for the discount from the beginning of its validity has already expired

It should be noted that the deadline for submitting the application to claim the discount from the beginning of its validity has already passed. However, this does not mean that working seniors will lose it in the future. If they submit an application for the discount to their employer, the employer will simply provide it starting from the month in which they applied for the discount.

And what about the money for the months before submitting the application? Active pensioners do not have to lose out on this either. Only this time, their steps will not lead to the employer, but to a branch of the Czech Social Security Administration (CSSA). We discuss the detailed procedure further in the article.

 

Options for retroactive application of the discount

If you did not manage to apply for the discount by the end of January (i.e., by the regular deadline), you have the option to request a refund of the overpayment from the Czech Social Security Administration (CSSA). By taking this step, you retroactively claim your entitlement to the discount, which creates the aforementioned overpayment. Therefore, the discount is not provided retroactively by the employer, but by the CSSA in the form of a “refund”.

 

How to proceed to obtain the refund

• You submit the application for the refund of the insurance overpayment at the locally competent CSSA branch. No special form is needed; simple text on a blank sheet of paper is sufficient. For example, “I request a refund of the overpayment on social insurance contributions for working pensioners.” Just add your identification details to the text.
• Attach confirmation from the employer regarding the assessment bases and for which months the discount was not applied. The employer is obliged to issue this confirmation within 8 days of your request.
• You can submit the application in person or via a data box. Both options have the same consequences. It depends more on which option is more convenient or accessible for you.

 

How to proceed to apply for the discount in the future

Employees, regardless of the type or extent of the employment relationship, apply for the discount directly with their employer.

• When: The discount can be applied at the earliest for the month in which the employee met the conditions, applied for the discount, and provided the necessary documents. It cannot be applied retroactively with the employer for past months, as mentioned in the previous part of the article.
• How: It is necessary to prove the entitlement to the discount to the employer:
  • By presenting the decision on the granting of the old-age pension and a sworn declaration that the pension is paid in full, OR
  • By confirmation from the Czech Social Security Administration about receiving the pension.
• Remember: The employee must inform the employer of all facts affecting the entitlement to the discount (e.g., granting of pension, change in pension amount) within 8 days.

 

Specifics for different types of employment relationships and self-employed persons

Employees working under agreements

The discount described above (and thus the right to a refund of the overpayment) also applies to persons working under agreements. The condition is that they pay social insurance (i.e., their earnings exceed the limits set for insurance payment):

• For an agreement on work performance, the limit is CZK 11,500 inclusive – from this amount, the obligation to pay insurance arises. To apply the discount and the right to a refund, the employee’s income under an agreement on work performance must therefore be at least CZK 11,500 per month.
• For an agreement on working activity, the limit is CZK 4,500 inclusive. The worker’s earnings must therefore be at least CZK 4,500 per month.

 

Self-employed persons

Different rules apply to self-employed persons. These are also influenced by the tax regime chosen by the entrepreneurs:

Standard regime (not flat-rate tax):

• Entrepreneurs claim the overpayment in the Overview of Income and Expenditures for the year 2025, which they will submit in the following year. Their insurance contributions will be reduced by 6.5% of the annual assessment base (or its pro-rata part for the months when they met the conditions).
• Possibility of lower advance payments: Entrepreneurs can already pay reduced advance payments for insurance during 2025 (22.7% instead of 29.2%). However, they must submit a notification of entitlement to the discount to the CSSA. They use a special form for this, which can be downloaded from the CSSA ePortal. If they do not submit the notification, they pay standard advance payments, and the overpayment will be refunded after submitting the Overview.

 

Flat-rate tax:

• Self-employed people under the flat-rate tax regime cannot pay lower advance payments.
• They can request a refund of the insurance overpayment (corresponding to the discount) from the CSSA only after the end of 2025 using a special form (see above).

 

How far back can one apply for a refund of the overpayment?

The entitlement to the discount can be claimed from the Czech Social Security Administration up to five years retroactively after the end of the calendar year in which the overpayment arose. Theoretically, this means that it is sufficient to apply for the refund by December 31, 2030, so as not to lose a single month. Provided that there are no further changes in legislation over time.

 

Be careful if you are in early retirement

The changes described above do not apply to persons in early retirement. In such cases, earning options are very limited by law. More precisely, there are specific exceptions to the general prohibition of gainful activity for those receiving early retirement pensions. This includes, for example, so-called supplementary income. The specified exceptions do not allow income high enough to create an obligation to participate in pension insurance. This obligation is a key requirement for a working pensioner to be entitled to the discount (or refund).

If you, as a person in early retirement, applied for the discount or refund, you would be admitting to violating the above restrictions. This would result in the suspension of early retirement pension payments and the calculation of a pension overpayment by the CSSA (i.e., your debt to the state).

 

Conclusion

The introduction of the social insurance discount represents a welcome financial relief and motivation for further economic activity for working pensioners. Whether you are an employee or OSVČ, it is important to know the conditions and the correct procedure for claiming the entitlement so that you can fully utilize it. Remember that even with later application, there are ways to get back part of the insurance already paid.

Please note that all described options and parameters for applying the discount are based on the state of legislation in April 2025. In case of any changes in the laws, the reality may not correspond to the information provided here.