When is it beneficial to voluntarily pay pension insurance contributions in the Czech Republic?

Voluntary participation in pension insurance in the Czech Republic can be a smart choice for individuals seeking to secure a sufficient retirement income or fulfill the minimum required insurance period.

Voluntary pension insurance offers a way to fill in gaps in your insurance record and potentially increase your future pension, especially during times when you’re not employed or are working outside the Czech social security system.

This option is available to anyone over the age of 18 who does not currently meet the criteria for mandatory participation in the pension insurance scheme.

Applications for voluntary pension insurance and record-keeping for participants are handled by the District Social Security Administration (OSSZ) based on the applicant’s permanent residence, or their registered address in the Czech Republic (in the case of foreign nationals). 

People residing permanently in Prague may submit their application at any local office of the Prague Social Security Administration. Those who do not have a permanent or registered address in the Czech Republic can submit their application at any OSSZ office of their choosing. If the application is submitted during ongoing pension proceedings, the OSSZ processing the pension application will also handle the additional contribution proceedings.

Since January 1, 2012, voluntary participation in pension insurance is allowed only up to the day immediately preceding the date on which the person becomes entitled to an old-age pension.

Most frequent cases when voluntary pension insurance pays off

Registration at the employment office without benefits

Suppose you are registered with the employment office as a job seeker but are not receiving unemployment benefits or retraining support. In that case, this period is not automatically counted toward your pension insurance. Voluntary insurance can be used to cover this gap.

Study after the age of 18

Systematic preparation for a future profession at a secondary school, higher vocational school, or university – whether in the Czech Republic or abroad – may qualify, provided the foreign institution is recognized by the Czech Ministry of Education, Youth and Sports as equivalent to Czech education.

Voluntary pension insurance can be arranged for any period of study after turning 18. You must attach proof of study to your application for insurance or deregistration. This proof can take the form of a certificate, a record book, or official confirmation from the educational institution. These documents must clearly state the start date and the end date, if applicable.

Both of the above cases can be covered retroactively without any time limitation.

Working abroad without a social security agreement

If you’ve worked in a country that does not have a social security agreement with the Czech Republic, you can voluntarily insure that period, retroactively, for up to two years.

Your application for insurance or deregistration must include documents proving the duration of your foreign employment. These documents must be officially translated into Czech, unless you’re a citizen of a country that has a social security agreement with the Czech Republic (in that case, documents in the original are accepted). Translations from Slovak are not required.

Volunteer service or work for a foreign employer in the Czech Republic

If you are performing voluntary work or working for a foreign employer on Czech territory without Czech insurance, you can choose to additionally insure this period.

Activities in the Czech Republic on behalf of a foreign employer

This applies to individuals employed by a foreign company and working in the Czech Republic in that company’s interest.

Participation in this insurance type is available only for periods starting on or after January 1, 2009, and is valid only for the duration of such activities. The application must include documentation confirming the existence and duration of the employment relationship, typically an employment contract.

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Accompanying a spouse working abroad

If you live abroad due to your spouse or registered partner being posted overseas by a Czech government institution, and you are not engaged in any gainful activity, you may voluntarily participate in pension insurance.

This applies to periods spent abroad following the assignment of a spouse or registered partner, who is either a civil servant under the Civil Service Act or an employee of a Czech government body, if their employer consents to the stay.

The application must include:

• Confirmation from the employer stating the work abroad details;
  
• A marriage certificate (or registered partnership certificate) confirming the duration of the marriage or partnership for the entire time you wish to remain voluntarily insured under this provision.
  

Entrepreneurial activity

You may also apply for voluntary pension insurance if you were self-employed during a tax period in which your income tax was paid under the flat-rate tax regime, and the deadline for paying the related lump-sum pension insurance premium has passed.

This type of insurance can be applied for at any time, but not before the expiry of the six-year payment deadline. For example, the earliest you could apply in this case for the year 2021 would be in 2028.

Without specifying a reason

Voluntary insurance is also possible without a specific reason, provided you have already been covered by pension insurance for at least one year through previous employment. However, this option is limited:

• It can only be used for a maximum of 15 years total.
  
• For retroactive insurance, you may only apply for up to one year before the submission date.
  

If the 15-year maximum is reached and no withdrawal request is submitted, your voluntary participation ends automatically on the last day of the period. Any pension contributions made after that point will be refunded as an overpayment.

How much to pay

The insurance premium for voluntary pension insurance is calculated as a percentage of a declared base. This base is determined by the person applying for voluntary insurance but cannot be lower than one-quarter of the average salary applicable in the calendar year in which the contributions are paid.

The contribution rate for voluntary participants is set at 28% of the declared base. For 2025, the minimum monthly payment is 28% of one-quarter of the average salary for that year – CZK 3,260.

Not sure if voluntary pension insurance is right for your situation? Our experts at 360WEDO can help you calculate the optimal amount, navigate the application process, and ensure compliance with current regulations. Reach out to us for a consultation and secure your future with confidence.

https://www.podnikatel.cz/aktuality/situace-kdy-je-vhodne-platit-si-duchodove-pojisteni-dobrovolne

https://www.cssz.cz/web/cz/dobrovolna-ucast-na-pojisteni