Lower house approves slower pension growth

The lower house on Wednesday passed a bill which will slow down pension growth in the next three years. The amendment is part of a broader austerity package aimed at reducing the gap in public spending. According to the bill, that was rejected earlier by the Senate, pensions will be adjusted yearly by a third of the increase in prices and in real wages. The previous system had pensions adjusted by the full amount of price and wage increases. The opposition Social Democrats have adamantly opposed the bill saying it would place 100 thousand more pensioners below the poverty line. The ruling coalition argues that the move will save the Czech government 48 billion crowns over three years. The bill will now have to be signed by President Václav Klaus before coming into force.

Author: Masha Volynsky