January next year will bring a fundamental change to the valorisation of pensions. Retirees will no longer receive a guaranteed fixed amount. This was the last year during which the so-called transitional period applied, according to which pensions grew by either a percentage or a fixed amount.
The Social Insurance Agency will send a written decision to the pensioner to increase the pension.
The valorisation mechanism is changing and pensions will increase only as a percentage, depending on the level of pension inflation. “According to the announcement of the Statistical Office of the Slovak Republic, the consumer price index for households of pensioners increased by 1.3% year-on-year. From 1 January 2022, pension benefits will increase by 1.3%, “said Zuzana Dvoráková, a spokeswoman for the Social Insurance Agency.
“It is still true that pensioners do not have to apply for a pension increase, the Social Insurance Agency decides on valorisation automatically and pensioners will receive an increased pension as always in the January payment terms together with the decision,” Dvoráková added.
This year, if the valorisation was unfavorable for the pensioner, he was guaranteed a fixed amount, by which his pension increased. The fixed amount was determined as 2% of the average monthly amount of the relevant type of pension. Thus, a pensioner whose valorisation amount was less than EUR 9.40 according to pension inflation received a fixed amount. If valorisation by a percentage was more advantageous for the pensioner, his pension was increased by a percentage.
After the new, however, each retiree will get an added 1.3 percent. So if someone receives a pension of 340 euros, their pension will increase by 4.50 euros and they will receive 344.50 euros.
The Social Insurance Agency will send a written decision to the pensioner to increase the pension. Pensions in a higher amount will be paid for the first time at the payout period for January 2022, with a supplementary increase from 1 January 2022 to the day preceding the payout period in January 2022. This means that a pensioner who receives his pension the decision will be delivered just before 20 January 2022.
From 2018, pensions in Slovakia increased by pension inflation or by a fixed amount from a given type of pension during a transitional period, with the proviso that from 2022, pensions will increase only by pension inflation. The law was passed by the former government of Robert Fico, which also included members of the Hlas-SD party. And it is they who have now criticized this decision, which they themselves have approved, calling it a great shame and an outrageous number. “No one in the Ministry of Labor and in the government will have an eyebrow,” said Erik Tomáš, a member of the Hlas-SD party.
According to Tomáš, members of the group around Petr Pellegrini will submit a draft amendment to the Social Insurance Act to the October part-session of the parliament, according to which pensions would continue to increase by at least two percent of the average amount of the pension, the SITA report said.
Pensions were valorised in January of this year by 2.6% of the monthly amount of the pension, but at least by a fixed amount determined as 2% of the average monthly amount of the relevant type of pension. Each old-age pensioner thus received 9.40 euros, early 9.10, disabled with a rate of decrease in ability to work up to 70 percent 4.40, if he has a rate of decrease in ability to work by more than 70 percent, he received 7.80, widows and widowers six euros .