The Czech Republic's gender pension gap has significantly closed this year

In a positive step towards gender equality among senior citizens, the Czech Republic has seen a notable reduction in its gender pension gap. Previously at 20 percent last year, the gap between average male and female pensions has now narrowed to 13 percent in 2023, according to data provided by the Czech Social Security Administration.

This progress is attributed to recent policy changes. The Social Security Administration introduced an additional child care allowance of 500 crowns per child per month this year, resulting in an automatic increase in pensions for 1.4 million women who raised a total of about three million children.

About 949,000 men and 1.41 million women currently 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 for a woman CZK 19,039 per month.

From the end of last year to mid-2023, the average monthly pension for women increased by CZK 2,554, with the additional child care allowance contributing significantly. For men, the average monthly pension increased by CZK 1,765 crowns.

This resulted in a decrease in the gender pension gap from roughly 20 percent at the end of 2022 to 13 percent in mid-2023.

However, there are concerns regarding the pace of pension growth in recent years. The current Czech government's attempt to slow down pension growth is met with criticism from the opposition, who claim this robs senior citizens. The government argues that pension increases have significantly outpaced inflation.

The Czech Republic's gender pay gap also contributes to the pension gap. Women tend to work in lower-paid sectors and positions, and even earn about ten percent less than men in similar roles.

Research from the Institute of Sociology of the Academy of Sciences of the Czech Republic indicates that about 30 percent of the country's gender pay gap can be attributed to motherhood and childcare responsibilities.

While the reduction in the gender pension gap is an encouraging step, experts emphasize the need for a comprehensive approach to targeting gender-based disparities. Narrowing the country's gender pay gap, along with improving access to childcare services to enable mothers to work, are crucial steps.

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

As the Czech Republic continues to address these inequalities, the narrowing gender pension gap signifies a significant stride towards a fairer and more equitable retirement system for all senior citizens.