Funds ready for pensions increase

A deputy PM says that the budget will provide funds for the payment of higher pensions. Jovan Krkobabic also said on Monday in Belgrade that technical arrangements are underway for the pensions to soon be paid in one, instead of the two monthly installments as is the case now. Funds ready for pensions increase He said that the decision to hike the pensions by ten percent was made through a previous agreement between the parties that make up the ruling coalition. During the negotiations to form a ruling majority, the deal was struck to increase pensions as soon as the government was constituted. Krkobabic told Serbia's state broadcaster RTS that it would be realistic to expect the pensions to reach 70 percent of the average salaries. But he added that while average salaries is at some EUR 418, average pension is only EUR 212 – no more than 52 percent of the wage level. "The increase of pensions talked about will still be below the guaranteed 60 percent of the average salary, which is below European standards,” Krkobabic said. He added that the most vulnerable population was that with the lowest income, adding that pensioners do not belong to the welfare category. "A pension comes as a result of work, investment and years of service,” Krkobabic pointed out. The government adopted a decision on August 28 to allow a 10 percent emergency increase of pensions in October. This will come along with the regular seven percent hike in November.

Funds ready for pensions increase

He said that the decision to hike the pensions by ten percent was made through a previous agreement between the parties that make up the ruling coalition.

During the negotiations to form a ruling majority, the deal was struck to increase pensions as soon as the government was constituted.

Krkobabić told Serbia's state broadcaster RTS that it would be realistic to expect the pensions to reach 70 percent of the average salaries.

But he added that while average salaries is at some EUR 418, average pension is only EUR 212 – no more than 52 percent of the wage level.

"The increase of pensions talked about will still be below the guaranteed 60 percent of the average salary, which is below European standards,” Krkobabić said.

He added that the most vulnerable population was that with the lowest income, adding that pensioners do not belong to the welfare category.

"A pension comes as a result of work, investment and years of service,” Krkobabić pointed out.

The government adopted a decision on August 28 to allow a 10 percent emergency increase of pensions in October. This will come along with the regular seven percent hike in November.