Q:
A:
No pension cuts next year
Belgrade,
28 November 2009
Serbian Deputy Prime Minister Jovan Krkobabic said that there will be no pension cuts in 2010, while in 2011 pensions will be increased in relation to economic growth and salary increases.
Jovan Krkobabic
In a statement to the Beta news agency, Krkobabic said that if there is GDP growth pensions will increase accordingly and there will also be increases under the new model for pension adjustment calculation.
The Deputy Prime Minister said that the model for pension adjustment calculation will take into account the inflation rate, cost of living, salary increase and other factors.
He stressed that pensions will increase gradually up to 70% of the average salary, adding that in 2011 pensions will stand approximately at that level.
He said that at the moment pensions stand at 63% of the average salary, which means that reaching expected levels should not present a problem.
He said that the IMF and World Bank have accepted that pension and public sector salary increase should be frozen during 2010, reiterating that there will be no pension cuts, regardless of the situation next year.
At the moment, the average pension in Serbia is RSD 19,700, said Krkobabic, adding that one of the huge problems in the pension system is that 58.7% or 935,000 of a total of 1.6 million pensioners have an average or less than average pension.
Nearly 500,000 pensioners receive a pension less than RSD 13,000, which is a huge social and economic problem, said the Deputy Prime Minister.
The Deputy Prime Minister said that the model for pension adjustment calculation will take into account the inflation rate, cost of living, salary increase and other factors.
He stressed that pensions will increase gradually up to 70% of the average salary, adding that in 2011 pensions will stand approximately at that level.
He said that at the moment pensions stand at 63% of the average salary, which means that reaching expected levels should not present a problem.
He said that the IMF and World Bank have accepted that pension and public sector salary increase should be frozen during 2010, reiterating that there will be no pension cuts, regardless of the situation next year.
At the moment, the average pension in Serbia is RSD 19,700, said Krkobabic, adding that one of the huge problems in the pension system is that 58.7% or 935,000 of a total of 1.6 million pensioners have an average or less than average pension.
Nearly 500,000 pensioners receive a pension less than RSD 13,000, which is a huge social and economic problem, said the Deputy Prime Minister.
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