Pensioners calling for permanent and higher annual allowance

Ljubljana – The Pensioners’ Trade Union has proposed the introduction of permanent and uniform annual allowance for pensioners to replace the current bonus set each year as part of a separate budget law. The union is proposing EUR 625 for all pensioners in 2023, significantly more than so far. The Labour Ministry has rejected the proposal.

The union’s head Francka Četković pointed out for the press on Wednesday as the government is expected to soon adopt supplementary budgets for 2022 and 2023 that the bonus was meant to be paid out in amounts ranging from EUR 140 to EUR 450 this year.

The progressive nature of the amounts has turned the annual bonus into a form of welfare, she argued, while speaking of discontent among pensions with the figures being far below the holiday allowance for workers, which stood at EUR 1,074 this year.

Many are also hurt because they fall into a lower bracket due to a single euro differential, the unionist added, while pointing out that in other countries with annual allowances for pensioners these were usually set at the same level as the pension.

The union is proposing the allowance to be set at 80% of the average pension. “This will put pensioners on an equal footing with workers and no longer discriminate against them. For July, the average pension was EUR 781, meaning the annual allowance would stand at EUR 625 for all recipients,” she said.

Pointing out that almost 25% of the pensioners’ received less than EUR 600 in July, Četkovič called for solidarity and for a uniform amount.

The measure, estimated at EUR 380 million, has already been rejected by the Ministry of Labour, Family, Social Affairs and Equal Opportunities, which spoke a “regressive and unjust measure”, although agreeing those with low pensions should get a higher bonus.

While acknowledging that too low pensions had been the main issue of Slovenia’s pension system in the recent period, the ministry said that pensioners had been included among the vulnerable groups targetted by aid measures during the coronavirus epidemic and the current costs of living crisis.

It moreover stressed the need for financial feasibility as regards the pension purse, for wide political and social consensus and for avoiding partial solutions dealing only with individual segments of the system.

“We are however also committed to fair redistribution of burdens and fair pension benefits. Every pension must guarantee a dignified old age, regardless of the contributions paid,” the ministry added.

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