Pensioners, seniors – illustrative photo.
Prague – The government has approved a draft amendment with a slowdown in the valorization of pensions, with stricter conditions for early retirement and with a new allowance that pensioners should receive in the event of high inflation. The Cabinet announced this on its website in the results of its meeting today. He did not discuss the pension amendment in the published program today. To. for the changes to come into effect, they must be passed by Parliament and signed by the President. According to the standard, the government would like to decide on the valorization for next year as early as this September. Politicians from the ANO and SPD opposition movements have repeatedly stated that they will not support the changes.
According to the Ministry of Labour, the slowdown in valorisation and stricter conditions should contribute to mitigating the collapse of the pension system and reducing indebtedness. Expenditure on pensions is rising sharply, now accounting for over 30 percent of government spending. Last year almost 600 billion crowns were paid out, this year it could be roughly 90 billion more. The pension insurance deficit could thus amount to around 80 billion crowns.