Czech pension savings and DIP 2026: state contribution and tax deduction calculator

What the state (up to CZK 340 a month), the tax office (up to CZK 7,200 a year) and an employer add to your penzijko and DIP, what you save by 60, and the funds' fees and returns.

Questions

How much does the state add to penzijko?

The state adds 20% of your monthly contribution from CZK 500, at most CZK 340 a month at a CZK 1,700 contribution: up to CZK 4,080 a year.

How much can I deduct from tax?

Contributions to penzijko above CZK 1,700 a month, contributions to DIP and private life insurance premiums come off the tax base, together at most CZK 48,000 a year. At the 15% tax that is up to CZK 7,200. CZK 5,700 a month to penzijko reaches the full deduction: CZK 1,700 for the state contribution and CZK 4,000 for the deduction.

What is DIP and how does it differ from penzijko?

The long-term investment product (DIP), since 2024, is an account at a bank, broker or investment company where you choose the investments yourself, such as funds, ETFs or shares. It has no state contribution, but contributions count toward the same CZK 48,000 deduction and an employer can contribute. You withdraw from 60 and after 120 months; withdrawing earlier pays back the tax saving.

When can I take money out of penzijko?

For contracts from 2024 from age 60 and after at least 120 months of saving; for older contracts after 60 months. An early-retirement pension can be drawn at most 5 years before the pension age.

How much can an employer contribute?

An employer's contributions to penzijko, DIP and life insurance are free of tax and insurance up to CZK 50,000 a year together. Anything above is taxed like pay.

What fees do pension funds charge?

The law today allows the mandatory conservative fund 0.4% of assets a year and 10% of the gain, other participant funds (balanced, dynamic) 1% and 15%, transformed funds 0.8% and 10%. According to the Ministry of Finance, companies charge just under the caps.

What did pension funds return?

According to the Association of Pension Companies, dynamic funds returned 16.50% on average in 2025, balanced 9.09% and mandatory conservative 2.53%; in 2024 12.54%, 7.32% and 3.41%. The average is weighted by the funds' assets.

What does the proposed "Lepší penzijko" change?

The government proposes from 1 January 2027 a doubled state contribution (40% of the contribution) for people up to 29, a contribution for children from CZK 100, the life-cycle strategy as the default, a single fee of 0.5% a year with no share of the gain for transformed, conservative, balanced and dynamic funds, and the end of transformed funds on 31 December 2036. It is a bill the Chamber hasn't passed yet; the calculator uses the rules in force.