Slovenia Adopts Changes to Pension Law

By , 04 Oct 2019, 11:30 AM Lifestyle
Slovenia Adopts Changes to Pension Law pixabay.com pasja1000 CC-by-0

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STA, 3 October 2019 - The government adopted on Thursday a set of changes to the pension insurance act equalising the base for pensions for men and women to 63.5% of the salary and regulating the status of pensioners who continue to work.

 Under the changes, the pension will no longer depend on whether the pensioner is a man or a woman but only on the pensionable years.

This means that men who have worked for a full 40 years will have their pension set at 63.5% of their wages as of 2025, up from the current 57.25%.

In this way male pensioners will be equal with female retirees, for whom the 63.5% is already in place.

Another change is that a pensioner will get by 1.36% higher pension for every child they have, yet this benefit could not be claimed for more than three children.

"We anticipate higher pensions and thus a higher degree of social security for future pensioners," Labour Ministry State Secretary Tilen Božič said after the government session.

He indicated that the long transition period until 2025 was a means of encouraging workers, especially those aged 59 to 64, to work longer.

Božič explained Slovenia fared worse than other countries in this age group, as many retire rather early, which he said was a major issue of Slovenia's pension system.

"We're focussing on prolonging working, so those who decide to work longer will be better rewarded," the state secretary said.

As for the pensioners who continue to work, they will initially get, alongside the salary, 40% of the pension they are entitled to.

After the first three years of being a working pensioner, their pension will drop to only 20%, as is the case now.

Božič said the government also expected a positive effect from this additional benefit for pensioners who opted for the dual, worker-pensioner status.

Before today's government session, the changes were endorsed by coalition parties, which however indicated some changes could still be made in parliament.

The Pensioners' Party (DeSUS) said the transition period to equalize men and women pensioners in 2025 was too long and should be shortened.

"We've agreed the ministry will make another round of calculations to see the actual financial impacts," deputy group leader Franc Jurša said after the coalition meeting.

He could not say for sure whether DeSUS would file any amendments, noting they would see if some corrections were needed once the legislation was in parliament.

The Ministry of Labour, Family, Social Affairs and Equal Opportunities outlined the changes in March, whereupon they were subject to intense talks with employers and trade unions.

The Economic and Social Council, the country's industrial relations forum, gave them its seal of approval last week, at the same time calling for more extensive changes.

All our stories on pensions in Slovenia are here

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