SLOVAKS with higher salary levels can expect to receive lower pensions in the future, with the Hospodárske Noviny daily writing that employees earning more than €980 per month will receive proportionally lower pensions in the future while those with salaries lower than the country’s average will receive more.
The Labour Ministry plans to introduce a gradual drop in the base for calculating pensions, often called the average personal wage base, for those with higher earnings. The daily wrote that a person currently earning €1,500 a month will have a base set at €1,420 and a person who plans to retire in 2020 will see the base limited to €1,300. Slovaks with salaries below the national average will have their base increased.
Vladimír Baláž, an analyst with the Slovak Academy of Sciences, told the daily that the change is a step towards sustainability for pensions paid by Sociálna Poisťovňa, the so-called first pension pillar administered by the state.
The Labour Ministry will also propose that the decision of whether a young worker will enter the privately-administered second pension pillar will be voluntary. Currently, all newly-hired young employees are automatically enrolled in the second pension pillar. The ministry also plans to make it easier for participants in the second pillar to withdraw, the daily reported.