Supplementary Pension Savings, or DPS, is one of the ways for people to save extra money, which they can then benefit in addition to the state pension. In principle, it is an investment, because you have a choice of 3 strategies (conservative, balanced, dynamic) and, depending on the choice of a specific strategy, your finances are appreciated with a higher or lower return. Basically, you invest in mutual funds that are pre-selected by the given investment/banking company, or you can set your own strategy with predefined funds. The advantage of DPS is that during the saving period, you receive contributions every month and can reduce your tax base at the same time (to have lower taxes). Its main goal is to ensure that citizens have sufficient financial resources after reaching their retirement age. One of the other benefits of DPS is that you can be credited by your employer. On czech market, you can take out DPS with 9 financial/investment institutions (ČSOB, Conseq).
Since 2024, there are changes to the DPS, mainly in three areas – the amount of state contributions, the withdrawal of contributions to pensioners, and the duration of savings. As for state contributions, since July 1, 2024, the maximum state contribution increases to 340 CZK per month. At the same time, the conditions for obtaining a state contribution to pension savings are changing. Currently, the state contributes from 90 CZK to 230 CZK per month and the amount of the contribution depends on the amount of the client’s month deposit. The lower limit for a state contribution has been increased from 300 CZK to 500 CZK, while the upper limit has increased from 1 000 CZK to 1 700 CZK. The state contribution is always 20% of the month deposit and is not entitled if an old-age pension has been granted. Starting July 1, all pensioners using DPS will no longer receive state contributions, and the question is: was this government move a good choice?
| Amount of month deposit | State contribution (20%) |
| 500 CZK | 100 CZK |
| 600 CZK | 120 CZK |
| 700 CZK | 140 CZK |
| 800 CZK | 160 CZK |
| 900 CZK | 180 CZK |
| 1 000 CZK | 200 CZK |
| 1 100 CZK | 220 CZK |
| 1 200 CZK | 240 CZK |
| 1 300 CZK | 260 CZK |
| 1 400 CZK | 280 CZK |
| 1 500 CZK | 300 CZK |
| 1 600 CZK | 320 CZK |
| 1 700 CZK | 340 CZK |
The table shows updated data for 2024.
The tax advantage remains unchanged – it is possible to achieve a maximum reduction of the tax base by an amount of 24 000 CZK per year with regular month deposits of at least 3 000 CZK. Tax relief can be applied to contributions that are higher than 1 000 CZK per month.
Since January 1, 2024, the minimum saving period has been extended to 10 years for contracts concluded after this date. Clients can withdraw their funds without penalties after 10 years of saving and after reaching the age of 60. The minimum saving period has therefore increased from the current 60 months to 120 months (from 5 years to 10 years). For contracts concluded before the end of 2023, the minimum saving period remains 60 months (plus the age of 60).
If you are interested in more detailed information or would like to consult the supplementary pension savings or any other topic, do not hesitate to contact us. We will find a tailored way to manage your money and maximize its value. We look forward to seeing you!