PM: Pensions To Be Increased by 10% by End of Term of Office
ZAGREB, September 21, 2020 - Prime Minister Andrej Plenkovic said on Monday that the payment of pension allowances was not in question, underscoring that increasing them by 10% by the end of the government's term in office is a priority.
"This is a clear message from the government about the protection of pensioners," Prime Minister said during the signing of an agreement on the establishment of a national council for pensioners and elderly persons with Visnja Fortuna, president of the National Pensioners' Convention of Croatia (MUH), and Jasna A. Petrovic, the Croatian Pensioners' Union (SUH).
The council is an advisory body that discusses the issues of pension and health insurance, social policy and the protection of the elderly and will submit its opinions to the government.
PM Plenkovic underscored successful cooperation with the MUH and the SUH, saying that the government endeavours to adopt everything that is useful in line with economic and financial ability.
As an example, he underscored the option to work and receive a pension allowance, which was now available to a greater number of pensioners.
"The results are visible -- according to latest data... there are currently 15,500 pensioners who are working in addition to receiving a pension allowance," he said.
Plenkovic also said that regular payment and indexation of pension allowances was ensured in the complex conditions of the coronavirus epidemic, with pension allowances being indexed by 0.7% since January 1, and by 1.41% since July 1.
He pointed out that the average duration of pensionable service of new pensioners had increased this year, which indicates there was greater awareness about the need to stay in the work force for longer. He added that the average old-age pension for 40 years of pensionable service amounted to HRK 4,669 (€619).
Pensions to increase by 10% by end of term in office
The Prime Minister said the government's first priority was to "increase pension allowances by 10% by the end of its term."
He recalled that in its previous term, the government increased pension allowances by about 12% and that lowest pension allowances were increased by an additional 3%.
MUH head Fortuna expressed satisfaction with the work of the council in the previous term and thanked the Prime Minister that the new agreement that would enable it to continue its work had been signed so quickly.
SUH head Petrovic warned that in addition to difficulties such as coronavirus, the government's term would be marked by poverty of the elderly as 61% of pension allowances were below the Croatian poverty threshold.
Petrovic also expressed hope that dialogue in the council would resolve the issue of family pensions which are mostly low and it was mostly women who were the beneficiaries of these allowances (94%).
Labour and Pension System Minister Josip Aladrovic said after the signing of the agreement that the work of the council has contributed to the quality of life of pensioners and elderly persons.
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Aladrovic: Pensions Will Not Be Cut, Work From Home Should Be Regulated Better
ZAGREB, Aug 20, 2020 - Labour, Pension System, Family, and Social Policy Minister Josip Aladrovic said on Thursday that amendments to the Labour Act need to better regulate work from home, that 18,000 more people are working now than prior to the epidemic, and that pension allowances would certainly not be cut in the autumn.
"We had previously said that we would amend the Labour Act and that we would alter labour legislation. One of the things we need to discuss with our social partners - the unions and employers - is work from home. That needs to be better regulated and better defined. What the autumn may bring in terms of working conditions and whether the scenario from March and April may be repeated is very uncertain," said Aladrovic.
He added that regarding the latest situation all options were open and that talks with social partners were necessary in that regard.
"The unions have announced that they wish to go more towards a national collective agreement while we consider that the Labour Act needs to be amended because there are several topics that need to be discussed, not just work from home," he added.
"If goodwill exists for an agreement and if our starting and ending positions are close, I think we can quickly resolve this issue. This doesn't only relate to work from home but to closed and open-ended contracts and additional and supplementary work," said Aladrovic.
So far 199 beneficiaries and 72 carers infected in aged care facilities
Asked about the announcement of "heavy" autumn and whether citizens need to be concerned about their jobs, wages, and pensions, Aladrovic said that pensions are "secure and stable."
"We've said before that that is the last line of defence... I'm certain that pensions will not be reduced or altered. As far as wages are concerned, trends indicate that over the past two, three months, they have been growing. At first, they fell but now they are growing. There are 18,000 people more employed now than before the start of the coronavirus crisis and I think that we will manage to hold out in the autumn," he said and added that the government had managed to save jobs but also that there was a recovery plan foreseen, and European and national funds.
He also commented on some countries putting Croatia on their lists of high coronavirus risk countries.
"I would say that it is partially due to political reasons but unfortunately also because the number of infections has been growing for several days. We have shown so far that we can handle the crisis economy-wise and I am certain that we can do that again in the months to come," he added.
Aladrovic presented the results of measures implemented in cooperation with the Croatian Institute of Public Health and the health ministry to protect the elderly population from the coronavirus, above all in aged care facilities, saying that 12 recommendations and decisions had been prepared.
"About 26,000 beneficiaries are residing in more than 868 facilities and so far 199 cases of the infection among beneficiaries have been identified and 72 among carers. Unfortunately, 46 beneficiaries have died. Since the start of the second wave in June, eight beneficiaries have died. These are acceptable data. The thing that we will do in the coming period is to raise awareness among the elderly and strengthen the ministry's crisis management team," he said.
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