The Pension Insurance Act, which aims to increase pensions, was presented to social partners at the Economic and Social Council, Minister of Labor and Pension System Marin Piletić reported on Wednesday, recalling that the Government had earmarked two billion euros for this by the end of its mandate.
The government plans to introduce new rights such as an annual pension supplement, an additional year of service for women for each child born, and a change in the formula whereby pensions would be adjusted to an 85:15 formula from July 1st, instead of the previous 70:30.
This will result in pensions being adjusted or increased twice a year at a higher rate, and ultimately in larger amounts, Piletić told reporters after the GSV session.
Likewise, after the introduction of new rights and the increase in family pensions, it was time to increase disability pensions, which are being increased by an additional 10 percent, and which are usually lower than the overall average pension.
Piletić announced that the decision on the amount of the pension supplement based on the number of years of service will be announced in October, and the supplement will be paid in December.
"Our goal is higher pensions and the sustainability of the pension system, but through a whole series of measures, we encourage people to stay in the world of work longer," emphasized Piletić.
He added that they do not want to prescribe new, higher retirement ages, but rather promote longer stays in the world of work through a system of bonuses of 0,45 percent for each month and by limiting the legal regulation to five years. He also announced the possibility of working 8 hours a day while receiving half a pension.
He explained that the new law stipulates that this option of working longer hours of 8 hours while receiving half a pension applies to all pensioners and will come into effect on January 1, 2026.
Union representative at the GSV, Sanja Šprem, said that the law has many novelties and that it is particularly important to the union side that the Government has respected the union initiative "67 is too much", and has already moved in the direction of encouraging longer stays in the world of work and bonuses.
It is also important to them that, regardless of the influence and suggestions of the World Bank, circumstances are different when it comes to penalizing early retirement.
The proposal for the new Pension Insurance Act was welcomed by Ivan Mišetić on behalf of employers, saying that it brings an increase in pensions and that the law still needs to be finalized, which can always be better.
The encouraging fact, he says, is that in the last few years the ratio of payments from the state budget for pensions, despite their high growth, although always insufficient, has significantly changed at the expense of contributions, with smaller budget allocations that will be directed towards growth and development, he added.
Photo: HINA/Daniel KASAP
