Raising retirement age reportedly scrapped


The Ministry of Labour, the Family, Social Affairs and Equal Opportunities has proposed gradual raising of the retirement age for persons without 40 years of pensionable service from the current 65 years to 67 by 2034.

But trade unions warned that the issue should be discussed as a part of a comprehensive reform and not some minor legislative changes, so the proposal was reportedly scrapped.

The negotiating group, whose members do not give statements until their work is completed, has allegedly also already found common ground on the pension rate for persons with 40 years of pensionable service.

The ministry had proposed increasing the rate in six years to 63% of the long-term average wage for both men and women. The current rate is 57.25% for men and 63.5% for women.

In line with the latest proposal, the pension rate for men would be gradually raised to 63.5%, and for women it would stay the same.

An additional 1.36% will be added for each child but no more than three children, provided that the person did not retire prematurely. Early retirement because of a child will still be possible.

Retired persons would be encouraged to continue to work after meeting the conditions for old-age pensions by receiving 3% higher pension for each year. For the first three years, the person would also receive 40% of their pension next to their monthly wage. After three years, they would receive 20% of their pension.

The Labour Ministry presented its proposal on 13 March and then a negotiating team was set up as part of the Economic and Social Council, the industrial relations forum. The government would like to push the legislative changes through parliament before the summer recess.