On Wednesday, the Minister of Labor and Pension System, Marin Piletić, boasted about the growth of pensions six years ago, but also the fact that the ratio of the number of pensioners and insured persons in Croatia this fall is significantly more favorable than in previous years.
On September 23, we had one million and 640 thousand insured persons, and the ratio of the number of pensioners to insured persons was one to 1.34, said the minister in the Croatian Parliament, to which he presented the final amendments to the Law on Pension Insurance.
These changes, which bring two significant novelties for family pension users – the possibility of using a part of the family pension while retaining the personal pension, and increasing the amount of family pensions by increasing the factors for their calculation, were praised by representatives, especially HDZ.
Burić (HDZ): Combined pensions increase by HRK 510 on average
The law is a significant, bold and reforming step that will directly affect the increase of family pensions as well as the lowest pensions, says Majda Burić (HDZ). He states that family pensions will increase by an average of 10 percent, or about HRK 250 per month, and the lowest by an additional three percent from January 1 next year, not in stages. Combined pensions, i.e. the entire personal plus part of the family pension, will increase by an additional 27 percent, which represents an average of HRK 510 per month, emphasized the representative.
The minister confirms this and reminds that the average, overall pensions during the mandate of Andrej Plenković’s government have increased by more than 29 percent since October 2016, and the lowest pension by 36 percent. In translation, today they average HRK 3,480, or HRK 2,136, Piletić said, then reminded that in 2016 the average gross salary was one thousand euros, and today, he says, that is the average net salary in Croatia.
SDP’s Boris Lalovac does not slow down the growth of pensions, but warns that it has been “wiped out” by inflation in the last six months, so he asks if they are thinking about changing the index of adjustment of pensions or if, instead of the general rate of inflation, the basket used by pensioners is taken.
We are thinking about all the options you have mentioned, Piletić replies and states that a working group has been formed that will thoroughly review the entire pension system.
Pavliček (HS): Due to inflation, the increase will not be felt
Marijana Pavliček (HS) is also worried that, due to inflation, as well as the entry into the eurozone, which will accelerate price growth, a good number of pensioners will not feel the increase. In addition, he warns that a quarter of our population is over 65 years old and that without the import of labor, the system will hardly be sustainable.
We are aware of the demographic challenges and the economic situation, so with these changes we encourage as many retirees as possible to extend their working lives, says Piletić.
Jure Brkan (HDZ) praises the solution according to which tradesmen’s status as insured ceases at personal request in case of suspension or suspension of activity, without negative consequences.
Ankica Zmajić (HDZ), on the other hand, emphasizes that the state has earmarked HRK 4.5 billion for the pension reform over the next three years.
HDZ MPs’ praise of the law prompted Željko Pavić (Social Democrats) to remark that it was good that the law did not go to the third reading. Namely, in the statements of some, we see that the number of pensioners who will benefit from the law is growing by geometric progression, the representative stated.
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