Active seniors bring savings and experience to companies – discount on insurance premiums proves successful

Employers in the Czech Republic are increasingly using a tool designed to support support the employment of disadvantaged groups on the labour market. The discount on insurance premiums, which has been in effect since last year, motivates companies to create jobs for specific groups – people over 55, parents caring for children under 10, young people under 21, and people with disabilities (PWD).

During the period of operation of this measure, more than 27,000 employers have already used it, and the total number of employees to whom the discount has been applied has exceeded 129,000. The total volume of discounts paid out under this programme reached more than CZK 1.1 billion in 2024.

Who benefits most often?

Data from the Ministry of Labour and Social Affairs show that the largest share is made up of parents of children under the age of 10 (37%) and people over 55 (36%). Beneficiaries of the premium rebate are mostly women, often employed in education and health care – sectors where there is a long-term labour shortage.

Positive impact on the elderly

The discount on insurance premiums is a great benefit, especially for working seniors, i.e. people who receive a retirement pension while remaining active on the labour market. In April alone, the number of such employees exceeded CZK 136,000, with the total volume of discounts reaching CZK 359 million. On average, a working pensioner will gain more than CZK 2 500 per month.

According to Minister of Labour and Social Affairs Marian Jurečka, the discount on insurance premiums is a functional measure with a clear purpose, as it supports employment of parents of young children, young people without work experience and experienced workers later in life.