Government considering change to pension rise system

The way in which pensions are raised to keep in touch with inflation could change, Labour Minister Marian Jurečka said at a press conference on Thursday. The adjustments, which are set to be presented as a legislation amendment by the government next year, count on changes to the base pension rate, which is the same for all citizens. The changes should help people who have low pensions, Mr Jurečka said.

To counter the sharp rise in inflation, the government enacted two extraordinary pension increases this year, on top of the standard rise that takes place in January. However, current pension legislation means that extraordinary rises increase the size of the reward side of the pension, which takes into consideration the salary that the retired individual used to earn and how many years they worked for. It can therefore be perceived as benefiting those with higher pensions more.