A significant legal framework has been established to improve the pension system for employees working in harsh labor conditions. Under the new law signed by Czech President Petr Pavel, effective January 1, 2026, employers will be required to pay 4% of basic salary to personal pension insurance for workers engaged in risk category 3 occupations (vibration, low/high temperature environments, heavy labor, etc.) for three or more shifts per month. This system is expected to enable workers in dangerous environments to prepare for future life stability and early retirement, promoting social security equality in the labor market.
Specific examples of category 3 risks include work involving hand-transmitted vibrations of 128-134 decibels and handling weights exceeding 30 kilograms (15kg for women). While these are not included in category 4, which allows up to 5 years earlier pension access under the already-approved pension reform, they are still classified as high health-risk activities. Prime Minister Fiala explained the system"s significance, stating workers can "cover living costs before reaching pension age."
However, businesses have voiced strong opposition. The Czech Chamber of Commerce expressed concerns about "significant burden on corporate administrative operations and costs, particularly affecting small and medium enterprises," citing new employer obligations, internal procedure changes, labor shift and contribution recording systems, and information/payroll system modifications that increase administrative burden and substantial costs.
This system highlights a common European challenge of balancing worker social security improvement with corporate operational burden, potentially influencing similar policy trends in other EU countries. The balance between labor market inequality correction and maintaining corporate competitiveness remains a crucial consideration for Japan-Europe business relations, particularly in manufacturing and construction sectors with high physical risks.