Czechia

   

Social Sustainability

#17
Key Findings
In the category of social sustainability, Czechia falls into the middle ranks internationally (rank 17).

Education investment has risen, but pre-primary and primary education are underfunded. Teacher recruitment is challenging due to low pay. Access to early childhood education is limited, particularly for children under three, and financial barriers lower access to tertiary education. The Roma population faces discrimination in the education system.

Income inequality and poverty rates are relatively low. Many Czechs face serious debt-repayment issues. Healthcare spending is slightly above the OECD average, but life expectancy and healthy life expectancy are lower, with environmental and lifestyle factors contributing to health problems.

Gender equality is a concern, with significant income disparities between men and women, and stereotypical family role distribution. Maternity and parental leave provisions are generous, but childcare access remains insufficient. Before the Ukraine war, the country was not known for welcoming refugees, but it has taken in large numbers of Ukrainians.

Sustainable Education System

#12

To what extent do policies and regulations in the education system hinder or facilitate high-quality education and training?

10
 9

Education policies are fully aligned with the goal of ensuring high-quality education and training.
 8
 7
 6


Education policies are largely aligned with the goal of ensuring high-quality education and training.
 5
 4
 3


Education policies are only somewhat aligned with the goal of ensuring high-quality education and training.
 2
 1

Education policies are not at all aligned with the goal of ensuring high-quality education and training.
Policies Targeting Quality Education
8
Government spending on education is largely determined by legal requirements and government commitments, especially regarding pay levels. While investment in education and training has increased overall, it remains low at the pre-primary and primary levels. Public spending on education rose from 4.5% of GDP in 2019 to 4.67% in 2020, still below the OECD average of 5%.

The pupil-to-teacher ratio was 12.3 in 2020 and 11.7 in 2021, but recruitment has been challenging due to issues related to pay and the profession’s prestige. The average age of teachers is around 46 years. In primary schools, 40% of teachers are over 50 years old; in secondary schools, this figure is 52%.

Specific features of the Czech education system include a low proportion of individuals with tertiary qualifications, a high proportion with upper secondary qualifications, and relatively low participation in education for children aged 3 to 5. The latter reflects recent family policies that offer robust support for parents staying home with young children. High participation in full-time education up to age 18 was established before 1989. The low number of tertiary-qualified individuals is also largely a legacy of the past, resulting in a workforce that may be less adaptable. This situation was compatible with economic development that emphasized medium-skilled work in various branches of foreign manufacturing companies.

In December 2023, the Ministry of Education, Youth and Sports (Minsterstvo školství, mládeže a tělovýchovy, MŠMT) presented the Long-term Plan for Education and Development of the Education System of the Czech Republic 2023 – 2027, a conceptual plan for modernizing education for the next four years. The plan envisions an innovation of the secondary education system based on a balanced share of general education and vocational fields, along with efforts to better link both to systems supporting graduates’ future careers. At the same time, the quality of practical teaching in vocational schools is to be improved by enhancing cooperation with employers by incorporating elements of the dual system.

Even with constraints on the state budget, some funding for investment and improvements will, at least for a time, be available from the NPO. This will support the construction of unspecified objects for prestigious universities in Prague and Brno. It is hoped that resources and running costs will be subsequently available, even as several universities struggle to make full use of their facilities. There will also be support for courses in higher education to promote digital competence and to remove children from institutional environments.
According to statistics from the European Commission, the Czech Republic ranked in 2021 among the countries with the lowest percentage of the adult population in continuous and long-term education, with only 5.8% of adults receiving regular monthly education. This figure is below the EU average of 10.8%. A call has been issued under the NPO for further professional education in digital competence, which will be administered by labor offices. The impact remains to be seen.

To what extent does the current policy approach in the education system hinder or facilitate equitable access to high-quality education and training?

10
 9

Education policies are fully aligned with the goal of ensuring equitable access to high-quality education and training.
 8
 7
 6


Education policies are largely aligned with the goal of ensuring equitable access to high-quality education and training.
 5
 4
 3


Education policies are only somewhat aligned with the goal of ensuring equitable access to high-quality education and training.
 2
 1

Education policies are not at all aligned with the goal of ensuring equitable access to high-quality education and training.
Policies Targeting Equitable Access to Education
7
The Czech state educational system provides compulsory school education for all for effectively 10 years. However, three notable problems remain concerning equity and access.

First, there is poor provision for the earliest years. Preschool education is among the least accessible in the EU. The share of children between the ages of three and the starting age of compulsory primary education who participated in early childhood education and care was 79.8% in 2022, putting Czechia in 26th place in the OECD – with a much lower figure for those under three years of age.

Second, there is limited access to tertiary education. Although there are no fees for standard public higher education, additional support is limited. Grants are available at the discretion of the institution for those living away from the family home and for those from very low-income backgrounds. The total sum spent on the latter in 2022 was CZK 14.1 million, suggesting that there were few student recipients. Private universities, which account for about 10% of the total student number, receive government support only for the above forms of student aid.

Students can and do support themselves through working, frequently in flexible forms outside the standard employment contract, such as in catering, retail, and seasonal agricultural work. It remains unclear how far financial difficulties limit access to higher education.
The third problem for equitable access is discrimination against the disadvantaged Roma population, who are
Roma children are disproportionately educated in special schools. They represent about one-third of the pupils in these institutions, with 10.3% of Roma children enrolled, compared to 2% of children overall. In 2007, the European Court of Human Rights delivered a landmark judgment, upholding an individual’s complaint that he had been assigned to a special school based on ethnicity rather than ability. In February 2023, the Commissioner for Human Rights of the Council of Europe concluded that there had been only minimal change in outcomes, noting that the testing system remained biased against Roma.

Citations:
https://www.msmt.cz/vzdelavani/skolstvi-v-cr/statistika-skolstvi/vyrocni-zpravy-o-stavu-a-rozvoji-vzdelavani-v-ceske-1
https://www.errc.org/news/15-years-after-DH-czechs-carry-on-segregating-roma-face-discrimination-in-every-aspect-of-their-lives

Sustainable Institutions Supporting Basic Human Needs

#15

To what extent do existing institutions ensure equal access to essential services and basic income support for those in need?

10
 9

Existing essential public services and basic income support are fully aligned with the goal of ensuring equal access for those in need.
 8
 7
 6


Existing essential public services and basic income support are largely aligned with the goal of ensuring equal access for those in need.
 5
 4
 3


Existing essential public services and basic income support are only somewhat aligned with the goal of ensuring equal access for those in need.
 2
 1

Existing essential public services and basic income support are not at all aligned with the goal of ensuring equal access for those in need.
Policies Targeting Equal Access to Essential Services and Basic Income Support
8
Almost the entire population of Czechia has access to public water and sewerage systems. Due to a favorable employment picture and a redistributive social policy, primarily through the pension system, income inequality and poverty in Czechia remain among the lowest in the OECD and the European Union. This also means that Czechia performs reasonably well in international comparisons regarding the ability to maintain heating and afford an internet connection. However, significant regional differences persist.

A substantial proportion of the Roma population – an estimated 2.2% of the overall Czech population – suffers from social exclusion. Another critical issue is the lack of affordable housing and the growing number of homeless people, including children and seniors. By the end of July 2022, the average household in Czechia spent 29% of its income on housing, a significant increase from 23% in November 2021. Vulnerable households spent almost half their income on housing (Muggins et al. 2022: 21).

Czechia still lacks a satisfactory affordable housing system, missing both a legislative framework and a long-term strategy. According to the Ministry of Regional Development, more than a tenth of the Czech population may be affected by housing unaffordability.

The energy crisis precipitated by the war in Ukraine led to an average energy price increase of 61.5% for households in the Czech Republic between June 2021 and 2023. Pensioners and low-income families were the most affected. Government-approved support measures mitigated the crisis’s impact. Although no special low-income household tariffs for energy were available, individuals could apply for energy, housing, or emergency assistance. In 2023, the government fixed electricity and gas prices, spending CZK 84 billion to keep costs down. This measure will end in 2024, along with a reduced subsidy for renewable energy, which is expected to result in higher prices. The exact consequences for consumers remain to be seen.

Citations:
Šetření Životní podmínky ČR 2023. https://www.czso.cz/csu/czso/setreni-zivotni-podminky-cr-2023
POVERTY WATCH 2023 – CZECHIA. https://www.eapn.eu/wp-content/uploads/2023/11/eapn-EAPN-CZ-English-version-2023-PW-5871.pdf (accessed: 2 January 2024)

To what extent do existing institutions and policies ensure high-quality services and basic income support?

10
 9

Existing essential public services and basic income support are fully aligned with the goal of satisfying basic human needs.
 8
 7
 6


Existing essential public services and basic income support are largely aligned with the goal of satisfying basic human needs.
 5
 4
 3


Existing essential public services and basic income support are only somewhat aligned with the goal of satisfying basic human needs.
 2
 1

Existing essential public services and basic income support are not at all aligned with the goal of satisfying basic human needs.
Policies Targeting Quality of Essential Services and Basic Income Support
7
Although indicators of poverty suggest a relatively favorable position for Czechia, this is largely due to high employment levels and adequate old-age pensions. However, certain sections of the population face significant hardship, with limited assistance from the welfare system. The social benefits system in Czechia is complex and challenging to access for many people. Labor offices responsible for dispersing social benefits are understaffed, which results payment delays and difficulties associated with applications for benefits. Those in need are also often stigmatized, a prejudice exploited regularly by political actors.

Accessing entitled benefits is problematic. For example, only 25% of eligible parents apply for child benefits, and only a fifth of those eligible for housing benefits receive them. Beginning in January 2024, changes under the government’s expenditure-saving budget reforms will reduce unemployment benefits for some claimants. These benefits are already quite stringent, starting at 65% of previous earnings for two months, falling to 50% for the next two months, and then to 45% for the remaining period of entitlement, which varies with age up to a maximum of five additional months. In October 2023, only 28.3% of job seekers registered at labor offices received any unemployment benefits.

Determining eligibility for social support is crucial, particularly through the living and subsistence minimums. The living minimum is the socially recognized threshold of monetary income needed to provide for food and other essential personal needs. The subsistence minimum is the minimum income necessary to cover food and other basic needs at a level that ensures survival. Neither the living minimum nor the subsistence minimum includes essential housing costs, which are covered by a separate housing benefit.

The living minimum is decisive in assessing material needs and determining entitlement to certain social benefits. In 2023, it was set at the equivalent of 11% of the average wage for a single-person household. This is the entitlement, for example, for those who are unemployed after their unemployment benefit entitlements have expired.

Another significant issue is the large number of people unable to pay their debts. As of July 2023, 660,200 people (7.6% of the total population) were under court foreclosure orders requiring the sale of property and automatic deduction from their incomes to pay off past debts. Many had multiple such orders, with a total of 4.08 million orders in force at the time. Some relief was offered by a “summer of grace” granting amnesties for some payments of interest and additional fines. The total number facing foreclosure fell slightly to 646,006 in January 2024, although the reduction primarily affected those with only minor debts (Mugglin et al. 2022: 21).

This leaves a significant proportion of the population in financial paralysis. The situation is particularly severe in old industrial areas, with 18% of the population in the Most district under foreclosure, rising to 26% among the 50–64 age group.

Citations:
https://www.charita.cz/kdo-jsme/pro-media/tiskove-zpravy/vychazi-poverty-watch-zprava-o-stavu-chudoby-v-cesku/
https://statistiky.ekcr.info/statistiky/celkove-povinnych.html
https://www.institut-predluzeni.cz/mapy-a-statistiky/exekuce/
http://mapaexekuci.cz/index.php/mapa-2/
https://www.mpsv.cz/documents/20142/4895582/Informace+o+vyplacen%C3%BDch+d%C3%A1vk%C3%A1ch+v+%C5%99%C3%ADjnu+2023.pdf/5a4f2f69-6120-5972-5638-7e58cf61ce52

Sustainable Health System

#14

To what extent does current health policy hinder or facilitate health system resilience?

10
 9

Health policies are fully aligned with the goal of achieving a resilient health system.
 8
 7
 6


Health policies are largely aligned with the goal of achieving a resilient health system.
 5
 4
 3


Health policies are only somewhat aligned with the goal of achieving a resilient health system.
 2
 1

Health policies are not at all aligned with the goal of achieving a resilient health system.
Policies Targeting Health System Resilience
7
Healthcare quality in primary, secondary, and preventive care is close to the OECD average. Healthcare expenditure was 9.06% of GDP in 2022, slightly above the OECD average. There was a slight decline after increased spending during the pandemic, reflecting the reduced need for spending to deal with the pandemic and the impact of inflation. There are 4.3 practicing doctors per 1,000 population (OECD average: 3.7) and 9.0 practicing nurses (OECD average: 9.2). Czechia has 6.7 hospital beds per 1,000 population, more than the OECD average of 4.3. [1]

“A National Strategy for Health Service Digitalisation” was published in 2014 and updated in 2020, but progress has been slow. Telemedicine has yet to be regulated, but during the COVID-19 pandemic, health insurance companies reimbursed remote consultations. In 2018, systems of electronic prescriptions and sick notes were launched. Under the strategy and associated legislation, a system was to be in place from 2022 so information could be safely shared between providers, and there was to be a register of providers and patients, with the latter also able to access information. However, a report by the NKÚ revealed that as of October 2023, doctors still could not access all useful information. The legal framework created was inadequate, and elements covered by laws had yet to be implemented. Money spent over the 2019 – 2022 period, therefore, did not lead to the intended results.

Citations:
Health at a Glance 2023: Key findings for the Czech Republic. https://www.oecd.org/czechia/health-at-a-glance-Czech-Republic-EN.pdf
https://www.mzcr.cz/narodni-strategie-elektronickeho-zdravotnictvi/
https://www.nku.cz/assets/kon-zavery/k22020.pdf

To what extent does current health policy hinder or facilitate achieving high-quality healthcare?

10
 9

Health policies are fully aligned with the goal of achieving high-quality healthcare.
 8
 7
 6


Health policies are largely aligned with the goal of achieving high-quality healthcare.
 5
 4
 3


Health policies are only somewhat aligned with the goal of achieving high-quality healthcare.
 2
 1

Health policies are not at all aligned with the goal of achieving high-quality healthcare.
Policies Targeting High-Quality Healthcare
8
In July 2020, the Czech government adopted a strategic framework for the development of healthcare through 2030, refined after the experience of the COVID-19 pandemic. One of the objectives of this program is the integration of long-term health and social care and the creation of regionally specific models of such care. Individual regions also have integrated healthcare concepts, considering their specific demographic, health, geographical, and economic situations.

The greatest problems, in relative terms, lie outside the direct realm of the health service. Both life expectancy and healthy life expectancy are below the OECD averages, and Czechia scores poorly on deaths attributable to high air pollution, low activity levels, and high alcohol consumption. These factors are reflected in relatively high mortality rates due to heart conditions. The unhealthy lifestyle of the Czech population is also evident in the high proportion of overweight or obese individuals, with 54.8% of the population aged 15 and older falling into these categories.

The picture is more favorable regarding preventive health services. Preventive healthcare is regulated by statutory standards that determine what preventive care citizens in particular age groups are entitled to and how often they receive it. Preventive check-ups are followed by screening programs designed to detect cancer at an early stage. These programs are funded by health insurance and conducted at accredited centers. Participation is voluntary, and the level of involvement varies depending on the type of screening program. For instance, 58% of women were screened for breast cancer, surpassing the OECD average of 55%, marking the highest participation rate among the programs offered. During the period analyzed, there were five screening programs in Czechia. As of January 2024, the number has increased to six. Bids are being invited under the NPO to improve colorectal screening levels, from either the private or public sector. Health insurance companies also support some recommended voluntary vaccinations, with a greater emphasis on children and seniors. On average, 2% of the total state budget expenditure on healthcare is allocated to preventive care.

Citations:
https://zdravi2030.mzcr.cz/zdravi-2030-strategicky-ramec.pdf

To what extent does current health policy hinder or facilitate equitable access to high-quality healthcare?

10
 9

Health policies are fully aligned with the goal of achieving equitable access to high-quality healthcare.
 8
 7
 6


Health policies are largely aligned with the goal of achieving equitable access to high-quality healthcare.
 5
 4
 3


Health policies are only somewhat aligned with the goal of achieving equitable access to high-quality healthcare.
 2
 1

Health policies are not at all aligned with the goal of achieving equitable access to high-quality healthcare.
Policies Targeting Equitable Access to Healthcare
7
A core set of healthcare services covers the entire population in Czechia. Under the public health insurance system, all individuals with permanent residence in Czechia are required to have health insurance. Additionally, individuals without permanent residence in Czechia must be insured if they are employed by an employer with a registered office or permanent residence in the country. Currently, there are seven health insurance companies in Czechia, though they do not compete on the quality of healthcare provision.
Mandatory prepayment covers 86.4% of total healthcare expenditure (2021), which is higher than the OECD average. Healthcare is generally accessible to all population groups without exception. General satisfaction with the availability of quality healthcare in Czechia is high at 77%, compared to the OECD average of 67% (OECD 2023).
Health insurance companies are obligated to ensure the timely and local availability of healthcare. However, according to data from the Institute of Health Information and Statistics of the Czech Republic (ÚZIS ČR), an average of 8% of children were not registered with a pediatrician by the end of 2022. Many Ukrainian refugees in Czechia have also reported difficulties finding a general practitioner, pediatrician, dentist, or gynecologist. There are regional differences in healthcare availability that seem inversely related to need. For example, life expectancy is 5% higher in Prague than in Ústecký, the region with the worst health profile, and infant mortality in Prague is only one-third the level in Ústecký. Long-term health problems are also more commonly reported in Ústecký. Despite this, the number of non-hospital doctors is 2.2 times higher in Prague than in the Ústecký region.

Citations:
Health at a Glance. OECD 2023. https://www.oecd-ilibrary.org/social-issues-migration-health/health-at-a-glance-2023_7a7afb35-en

Gender Equality

#24

How committed is the government to ensuring gender equality in all respects?

10
 9

The government is clearly committed to the goal of ensuring gender equality.
 8
 7
 6


The government is largely committed to the goal of ensuring gender equality.
 5
 4
 3


The government is only somewhat committed to the goal of ensuring gender equality.
 2
 1

The government is not at all committed to the goal of ensuring gender equality.
Policy Efforts and Commitment to Achieving Gender Equality
6
Czechia is formally committed to gender equality, with references to equality found in the constitution and the labor code. The Council for Equality of Men and Women, consisting of 42 members from ministries, other public bodies, and outside interests, exists within the Government Office. In March 2021, the government adopted the Government Strategy for Equality of Women and Men for 2021-2030. This strategy provides a clear framework for gender equality over the medium term and sets government priorities each year.

Despite these commitments, Czechia does not compare favorably with other EU or OECD members regarding gender equality. The primary issues include labor market disparities, such as significant income differences between women and men, and higher rates of poverty among women. Additional problems include the underrepresentation of women in decision-making positions, horizontal gender segregation in education, and stereotypical role distribution in household and family care, which negatively affects the balance of work and family responsibilities.

In 2022, the gender pay gap stood at 16.4%, while the EU average was 13%. According to the Global Gender Gap Report 2023, Czechia ranked 101 out of 146 countries in 2022. Although more women than men have tertiary education, and this trend is increasing, the representation of women in leadership positions does not reflect this. Women’s representation in parliament has long been between 15% and 22%, leaving Czechia behind the OECD average. The situation improved after the last elections to the Chamber of Deputies (Lower House) when the proportion of women reached 25%.

The low level of commitment to gender issues from some leading politicians was demonstrated in the controversy over the Council of Europe’s Istanbul Convention of 2011, which aims to prevent and combat violence against women and sets out requirements for legal protections and their monitoring. Czechia continually postponed ratification, and Senate committees through 2023 argued for rejection. Despite government support, the convention was narrowly rejected by a Senate vote in January 2024, making Czechia one of five EU members yet to ratify the convention.

Opponents from all political groups represented in the Senate, apart from the Pirate Party, argued against the convention. Concerns included fears that it was introducing “gender ideology” (the word “gender” is used in the convention) and attacking the “traditional form of the family.” Some also argued that existing laws were sufficient and that no additional measures were necessary, despite Czech police in 2022 reporting 76 domestic-related murders, 880 rapes, and 430 cases of domestic abuse, with the clear likelihood that many more of the latter two went unreported. Regardless, the convention will still apply in Czechia as it was approved by the EU for all member states in 2023.

Citations:
Global Gender Gap Report 2023. https://www3.weforum.org/docs/WEF_GGGR_2023.pdf
https://www.irozhlas.cz/zpravy-domov/znasilneni-redefinicie-navrh-sexualni-nasili-konsent-ministerstvo-spravedlnosti_2308181811_ank
https://www.coe.int/en/web/istanbul-convention
https://www.irozhlas.cz/zpravy-domov/vinohradska-12-istanbulska-umluva-senat-petikoalice-vlada-gender-domaci-nasili_2401300600_nel

Strong Families

#25

To what extent does the current family policy approach support or hinder unpaid family care work?

10
 9

Family policies are fully aligned with the goal of creating the conditions for strong families.
 8
 7
 6


Family policies are largely aligned with the goal of creating the conditions for strong families.
 5
 4
 3


Family policies are only somewhat aligned with the goal of creating the conditions for strong families.
 2
 1

Family policies are not at all aligned with the goal of creating family-friendly conditions.
Family Policies
6
The length of paid maternity and parental leave exceeds the OECD average, offering 28 weeks of maternity leave. Both parents can take leave until the child’s third birthday, although only one parent can benefit at a time. In addition to maternity and parental allowances, there is also a paternity allowance – father-specific leave that, starting in 2022, can be taken for a maximum of two weeks. Employees can also take leave to care for a sick child under ten or a child with a serious illness.
Under the labor code, a parent can return to a position corresponding to the employment contract’s job description until the child reaches the age of three. Returning to work can be problematic for women due to poor provision of care for very young children. Enrollment in formal childcare for the age group 0 – 2 years is only 1.8% and 54.5% for the age group 3 – 5 years. The situation improves among older age groups, reaching 93% for five-year-olds, as kindergarten attendance during the last year of preschool has been mandatory since 2017.

While public support for alternative forms of childcare, including kindergartens and so-called children’s groups, has expanded, the gap in childcare facilities has persisted. In 2022 and 2023, there was an additional need to admit children with temporary protection coming from Ukraine to kindergartens and children’s groups. The NPO offers the prospect of some help for a few years with calls for projects to expand childcare facilities – identified as a cause of gender inequality – from non-state bodies and from regional and municipal authorities.
Returning to the labor market after parental leave and balancing family and work life are also hindered by the limited use of part-time work or flexible working hours. In 2022, only 6.2% of employees in the Czech Republic worked part-time; of these, three-quarters were women.

Sustainable Pension System

#5

To what extent does the current pension policy approach prevent poverty among senior citizens?

10
 9

Pension policies are fully aligned with the goal of preventing old-age poverty.
 8
 7
 6


Pension policies are largely aligned with the goal of preventing old-age poverty.
 5
 4
 3


Pension policies are only somewhat aligned with the goal of preventing old-age poverty.
 2
 1

Pension policies are not at all aligned with the goal of preventing old-age poverty.
Policies Aimed at Old-Age Poverty Prevention
7
The Czech pension system has developed through gradual and partial reform of the pay-as-you-go system that existed before 1989. Its centerpiece is a mandatory public pension insurance scheme, administered by the Czech Social Security Administration (Česká správa sociálního zabezpečení, ČSSZ). Income and spending have been roughly in balance over the years, sometimes with a small surplus and sometimes – as in 2022 – with a small deficit. In addition, there are supplementary pension savings schemes supported by the state in the form of contributions and tax relief.

The official minimum retirement age, which has gradually increased since 1996, differs for men and women. For women, this age depends on the number of children reared. In 2017, the maximum retirement age for both sexes was set at 65 years. Since the late 1990s, there have been efforts to prepare and adopt significant pension reforms, including a division into a basic pension plus a voluntary additional pension that could be administered by private funds. These changes have never won the political consensus necessary to ensure permanence.

The main change in practice has been the periodic increase in the pension age, which has lagged slightly behind the increase in life expectancy. From 1993 to 2022, male life expectancy increased by 6.4 years while the pension age increased by 5 years. Meanwhile, the level of state pension fell from the equivalent of 49% of average earnings to 42% (45% for men and 37% for women), with 31% reported as facing foreclosure proceedings to reclaim unpaid debts. This does not indicate an imminent threat to the system’s sustainability, assuming gradual increases in the pension age continue in the future.

Price increases in 2022 and 2023 significantly impacted pensioners in Czechia. The government responded with an extraordinary indexation of pensions. However, in early 2023, it proposed – and in July implemented – a change to the indexation system. This adjustment meant the average pension would increase by only 4% instead of 9% in response to inflation, a move that was highly controversial.

The argument was that old-age pensioners were generally not living in poverty (the relative income poverty rate among people aged 66+ was below 6% in 2023), and pensions could reach nearly 50% of the average wage (presumably calculated with the assumption that average wages would not rise in 2023). Pensions were seen as becoming an immediate threat to the state’s financial stability. As a result, the measure was pushed through parliament as a special measure requiring only limited discussion.

A complaint regarding this and other procedural aspects was rejected by the Constitutional Court in January 2024, but more complaints could follow. Further changes to pensions included tightening eligibility for early retirement from five to three years before the statutory retirement age, effective October 2023. The length of pension insurance required to obtain an early retirement pension also increased to 40 years. While this may help increase the labor force, it will negatively impact those with shorter tenures in the labor market and those whose poor health hampers working into old age.
Proposals for a more substantial pension reform are promised for early 2024. A proposal has been put forward for discussion to introduce a more formal link between retirement ages and life expectancy.

Citations:
Pensions at a Glance 2023. OECD and G20 Indicators, p. 37, https://www.oecd.org/publications/oecd-pensions-at-a-glance-19991363.htm
https://www.cssz.cz/documents/20143/99593/2022_zoc.pdf/26a54954-34ac-1ef6-5324-dcc2dc1edb9a
.cz/v-otazce-valorizace-penzi-zvolil-pavel-pristup-chytreho-horaka-je-adekvatni-8952381.
https://plus.rozhlas.cz/duchody-jsou-nejvyssi-v-historii-vyssi-valorizace-znamena-vazne-hospodarske-8942481
https://www.usoud.cz/fileadmin/user_upload/Tiskova_mluvci/Publikovane_nalezy/2024/Pl-30-23-valorizace_duchodu.pdf

To what extent does the current pension policy approach hinder or promote intergenerational equity?

10
 9

Pension policies are fully aligned with the goal of achieving intergenerational equity.
 8
 7
 6


Pension policies are largely aligned with the goal of achieving intergenerational equity.
 5
 4
 3


Pension policies are only somewhat aligned with the goal of achieving intergenerational equity.
 2
 1

Pension policies are not at all aligned with the goal of achieving intergenerational equity.
Policies Targeting Intergenerational Equity
7
To fulfill the right to material security in retirement guaranteed by the constitution, the pension system must combine both solidarity and merit functions. While it provides reasonable protection against poverty, the replacement ratios for high-income groups are significantly lower. The additional costs imposed by an aging population – increasing the number of people above the pension age – have been offset by lower pensions relative to earnings and a slightly higher burden on the incomes of the working generation.
Increasing the working population can further ensure balance. Citizens can continue to be employed without restriction while receiving a retirement pension. If social insurance is paid on this income, one can apply to the ČSSZ to recalculate the pension at regular intervals, but any increase is minimal. The employment rate of people aged 55 – 64 (72.9%) is higher than the OECD average, and the trend is upward due to gradual adjustments to the retirement age. In the Czech Republic, it is possible to receive a retirement pension and work simultaneously without restrictions. In 2021, the share of working pensioners was 10.7% of all employed people.

Sustainable Inclusion of Migrants

#6

To what extent does the current policy approach hinder or facilitate the inclusion of migrants into society and the labor market?

10
 9

Integration policies are fully aligned with achieving the sustainable inclusion of migrants in society.
 8
 7
 6


Integration policies are largely aligned with achieving the sustainable inclusion of migrants in society.
 5
 4
 3


Integration policies are only somewhat aligned with achieving the sustainable inclusion of migrants in society.
 2
 1

Integration policies are not at all aligned with achieving the sustainable inclusion of migrants in society.
Integration Policy
8
Czechia has a mixed record in integrating foreigners. Before the conflict in Ukraine, it was not known for welcoming refugees. In 2022, there were 1,694 asylum applications, of which 92 were granted, and 25 individuals were granted citizenship. However, increasing numbers of foreigners had come temporarily to work, including citizens from other EU member states, Ukraine, Vietnam, and the Russian Federation.

The situation transformed in 2022 when refugees from Ukraine were welcomed. The exact figure is unclear, but by October 2023, 453,725 had been granted temporary protection. An unknown number have since returned to Ukraine or moved elsewhere. Official data showed 635,857 Ukrainians in the country at the end of 2022.

Following Russia’s invasion of Ukraine in February 2022, the European Union activated the Temporary Protection Directive, which has also been applied in Czechia. This directive grants rights including residence permits, access to the labor market and housing, medical assistance, and access to education for children. According to a Voice of Ukrainians in the Czech Republic survey, one-fifth of Ukrainian refugees in Czechia did not see a doctor despite needing medical care. Many refugees face language barriers, lack of information, and long waiting times.

There were also early complaints from Ukrainian Roma of systematic and individual racism, which led to them being denied help for weeks.

By the end of 2022, foreigners made up about 10% of the population, with 57% from Ukraine and 10% from Slovakia. This is an increase from 6% in 2021. In 2022, foreign citizens accounted for 23% of the labor force registered by labor offices. Of these, 80% were working, including 47% of Ukrainians. However, foreign citizens often work in low-skilled jobs, frequently recruited in their home countries by employment agencies for work in manufacturing.

For people from non-EU countries, the only way to apply their qualifications in the Czech labor market is through the recognition of their diploma, known as nostrification. This process is often lengthy, leading to complaints from many employers seeking qualified labor. One significant example is the health sector, which suffers from a shortage of doctors and nurses and could benefit from newcomers with non-EU medical degrees who otherwise occupy unskilled positions. Foreigners may encounter several barriers when seeking employment that matches their qualifications, one of which is a lack of knowledge of the Czech language. Language courses for adults with the legal right to stay in the country are provided by regional Centers for the Integration of Foreigners. The largest of these is the Integration Center Prague (Integrační centrum Praha ICP), a non-governmental organization receiving funding from the EU, the Czech government, and municipal authorities. However, it does not offer courses beyond a basic level.

Citations:
Hlas Ukrajinců: Zdraví a služby. Výzkum mezi uprchlíky. Listopad 2022./ The voice of Ukrainians: Health and Services. Research among refugees. November 2022. https://www.paqresearch.cz/post/hlas-ukrajincu-zdravi-sluzby
https://icpraha.com/kdo-jsme/?gad_source=1&gclid=CjwKCAiArfauBhApEiwAeoB7qOD6ZEYA

Effective Capacity-Building for Global Poverty Reduction

#26

How committed is the government to helping build the capacity to reduce poverty and provide social protection in low- and middle-income countries?

10
 9

The government’s development cooperation strategy is fully aligned with the goal of improving capacity-building for poverty reduction in low- and middle-income countries.
 8
 7
 6


The government’s development cooperation strategy is largely aligned with the goal of improving capacity-building for poverty reduction in low- and middle-income countries.
 5
 4
 3


The government’s development cooperation strategy is only somewhat aligned with the goal of improving capacity-building in poverty reduction in low- and middle-income countries.
 2
 1

The government’s development cooperation strategy is not all aligned with the goal of improving capacity-building for poverty reduction in low- and middle-income countries.
Management of Development Cooperation by Partner Country
5
Czechia is not a significant player in international development, dedicating a relatively low share of GDP to development aid. Up to 2021, this share stood at 0.13% – one of the lowest among OECD countries – and rose to 0.36% in 2022, still below the OECD average. This aid includes a systematic and planned element administered and monitored by the Czech Development Agency under the Ministry of Foreign Affairs. The agency has a strategy for the 2018–2030 period, allocating resources for humanitarian aid and transformation cooperation. Priority countries for development cooperation include Bosnia and Herzegovina, Ethiopia, Moldova, Georgia, Cambodia, and Zambia. In 2022, 108 specific projects were supported, focusing on water resources, combating erosion, developing social protection and participation, education, and rural development. Czechia frequently collaborates with EU agencies, thereby gaining experience in development activities. However, total spending for all these projects was equivalent to only 0.006% of GDP.

Humanitarian aid in response to catastrophes and assistance to Ukraine, along with a large allocation for Ukrainian refugees in Moldova, are provided under a separate assistance program. Other foreign aid programs operate under the responsibility of various ministries. This assistance includes economic and financial cooperation, security, cybersecurity, technical assistance, strengthening the capacity of universities in developing countries, and government development scholarships. Development projects are also implemented in cooperation with international organizations. Nevertheless, the total expenditure is small, and the systematically planned element appears very small relative to the country’s resources.

Citations:
http://www.czechaid.cz/wp-content/uploads/2023/08/V%C3%BDro%C4%8Dn%C3%AD-zpr%C3%A1va_%C4%8CRA_2022.pdf
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