Planned increase in old age pensions

Old age pensions in the Czech Republic will increase by 346 crowns monthly on average as of next year, Labour and Social Affairs Minister Petr Necas told journalists after a cabinet meeting on Monday. The minister said that the living standard of pensioners would not drop despite the fiscal reform package approved by the government. He said increased expenditures would be further compensated in 2009 if necessary. Opposition parties on the other hand argue that the increase in pensions is woefully inadequate to counter the expected price hikes resulting from higher VAT tax on food, medicines and transport.