Mandatory employer contribution to retirement savings products for risk category 3

In connection with the adoption of the pension reform, which excluded employees working in the 3rd risk category from the possibility of early retirement risk category, the Czech government promised to push through a law that would introduce a mandatory contribution to retirement savings products by employers for employees who perform work classified in the 3rd risk category. The aim of this amendment is to enable these employees to obtain higher financial resources to help them bridge the period before reaching the normal retirement age, for example by drawing a so-called "pre-retirement pension".

The bill was debated by the Chamber of Deputies and in June 2025 was also submitted to the Senate of the Czech Republic for debate. On 23 July 2025, the bill was approved, and in August 2025, it was signed by the president and published in the Collection of Laws under number 324/2025, with an effective date of 1 January 2026.

The mandatory contribution can be provided for old-age savings products, which are supplementary pension insurance with a state contribution and supplementary pension savings. However, the employee's entitlement does not arise automatically. The employer's obligation to pay the mandatory contribution arises only on the basis of the employee's notification to the employer that they are exercising their right to this contribution. According to the law, the notification must be made in writing and must contain details of the pension company, bank details and other payment details.

The amount of the mandatory contribution is 4% of the assessment base for social insurance, provided that the employee works at least 3 shifts of hazardous work in a given calendar month. In addition to the employer's obligation to provide the employee with a contribution for selected products in old age, the employer is obliged to inform its employees in writing about their right to a mandatory contribution and how to apply for it before the employee starts performing hazardous work. The employer is also obliged to keep records and retain records of contributions paid for a period of 10 calendar years following the year to which they relate. The employer shall issue to the employee a confirmation that the mandatory supplement has been paid, no later than by the end of the month in which the employer paid the supplement for the first time.

Author: Blanka Knedlová

Revision: Martina Farářová