The direction is pushing for allowances and the 13th pension

Double child allowances and 13th pensions. This is what the latest attempt by the Smer coalition party to reverse the election result looks like. If the proposals pass, the result will be a trillion-dollar ax for the future government. There is no money in the state treasury at the suggestion. There is nothing to take away from. This can also result in sanctions from Brussels.

Already on Wednesday, the measure was approved by the government. Subsequently, however, they must be on extraordinary part-session. The question is whether it is obsolete the governing party succeeds.

The thirteenth pension should be paid to retirees for the first time already in December this year. Each pensioner would receive 460 euros. People in early retirement 433 euros. In addition, however, the pension is not just about old-age pensions, but also recipients of invalidity, orphans, widows ‘and widowers’ pensions.

A sharp increase in pensions will cost the state treasury hundreds million. The Council’s budget estimate roughly speaks of an amount EUR 581 million. Economist Ján Šebo from Matej Bel University counts on EUR 690 million. The prime minister himself estimated the expenses at 500 million eur. In any case, these are only this year’s estimates, with volume the amount of money paid will increase every year. In this year’s budget however, it only counts on the payment of the Christmas allowance. It costs the state 160 million euros. Pensioners with the lowest pensions so in December they will receive at least a one-off contribution of € 200.

(Click on the image enlarge, open in new window)

Family allowances should also go up. And since January 2021. Parents should thus receive 50 euros for each child, instead the current EUR 24.90. “A family with two children improves every year by 600 euros, “said Prime Minister Peter at the presentation of the proposal on Tuesday Pellegrini. In total, family allowances are received for more than a million children. The state treasury would thus cost the state treasury 300 million euros.

However, the incumbent government has committed itself to moving towards a balanced one budget. Slovakia should have it next year. After the approval of pensions in addition, and an increase in child allowances, however, we can completely on it to forget.

For the time being, the Ministry of Finance is reluctant to propose. Estimate its effects he does not want to, as according to his spokeswoman Alexandra Gogová, the exact ones are not known parameters of both measures. “If the proposals are approved, the ministry will finance, within the budget options, seek resources to cover them. Already now, however, we can say that given the spending limits for this year it will be a very difficult task, “says Gogová.

The budget approved by the government expects a deficit of 0.49 percent of gross domestic product (GDP). However, this is according to analysts too optimistic view. “For 2020, we estimate the current deficit at almost 1.8 percent of GDP, “said the President of the Council on Budgets responsibility of Ivan Šramko.

If the 13th pension were added at the end of the year, the deficit would increase by 0.6 percentage points. It would reach 2.4 percent of GDP. In that in this case, however, Slovakia would face sanctions from the European Commission.

In addition, the government would be in breach of the expenditure ceiling it has not yet adopted at the end of last year. He forbids spending more money than agreed in the approved budget. “If this commitment is kept, this year the deficit may approach the 0.6 percent mark, “said Šramko.

If the government wanted to comply with the approved ceiling, it would have to cut others expenses. But where? Economist Ján Šebo from Matej Bel University in Banská Bystrica Bystrici sees space, for example, in the distribution of child allowances. Well, since it should increase, it will probably not be the way. Cancellation is also possible parental allowance. However, the outgoing government on January of this year increased. “Alternatively, we could tell our parents that we are in favor primary and secondary school will pay full tuition in the amount of approximately 1,200 euros per year, “says Šebo. Well, it wouldn’t have to be in the coming years either enough. “In 15 years, we would have to add the full payment procedures at outpatient doctors, “adds Šebo.

Hard life in retirement

Efforts to increase pensions are not surprising. Interested in getting what the most votes of the elderly led the incumbent government late last year to set the pension ceiling. The increase was a similar move minimum pensions. Retirees are once of the strongest constituencies. And it’s not just the old ones. Currently, more than 1.4 million Slovaks receive some form of pension.

However, pensioners themselves are also pushing for the introduction of the 13th pension. “With this request, we have addressed all political parties, including those outside Parliament. We have not heard openly from anyone, “says the head of Jednota pensioners of Slovakia Ján Lipiansky. According to him, the answers differed only in what the pension should look like.

Lipiansky points out that pensioners do not live easily in Slovakia. “For In addition, every euro is good for a Slovak pensioner, ”he says.

The average pension in Slovakia reached the value in January 2020 EUR 477.14. However, most people retire not so much. The statistics are distorted by higher pensions of new pensioners.

“After forty years of work, my pension is less than 400 euros. When I deduct rental and energy fees, I have less than a lifetime left 200 euros a month, “says pensioner Ivana Jankovičová from Prievidza. According to her, many older people cannot pay from the pension to the dentist ceramic seal and some also have problems with the payment of surcharges for medicines. Herself for a low pension works.

“I solved the bad financial situation by going to Austria, where I, A 66-year-old woman cares for a 90-year-old pensioner, “says the pensioner from Prievidza. Jankovičová saves most of the money she earns. He wants to to have a reserve for times when he will no longer rule. Babysitters of the old people in Austria usually work for a trade, in two weeks they earn from 800 do 1 200 eur.

Higher taxes or foreigners

Currently, social security contributions are paid for the payment of one pension more than two working people. If nothing changes on the current setting up a pension system, in 2030 it will be exactly two people. In 2060, one employee will work per pensioner.

“If the old-age pensioner is to have a compensation rate of 50 percent average wage, then this worker would only have to pay premiums half of his salary, “says Šebo. But we would still take something from him health insurance, something in income tax, something in value added tax value and excise duties, something on local taxes, ”adds the economist. “In this case, the tax burden should be around 80 percent of earnings, “explains Šebo.

It can partially solve the problem of the lack of working people opening the domestic market to people from abroad. Generous German pension Today, the system is also drawn by working Slovaks, who have gone there for higher education platmi.

Slovak wages are already attracting Serbs and Ukrainians. “In your main I will earn four times more in the city than at home in Serbia, “says Nella Stevanovic from Serbia. She currently works in one for 800 euros net from industrial parks around Bratislava. However, her dream is to get on better paid job in Germany.

By way of payment of 13 pensions or higher child allowances may be also an increase in contributions for workers. “It simply came to our notice then considering that when there are 13th and 14th salaries in Slovakia, we can also allow the 13th pension. This reasoning has a flaw in beauty. From 13. a 14. no salary is paid and no thirteenth pension is payable, ‘ says Iness analyst Radovan Ďurana.

The promotion of a pan-European one can also bring more money to the budget robot taxation.

(Click on the image enlarge, open in new window)

Double child allowances and 13th pensions. This is what the latest attempt by the Smer coalition party to reverse the election result looks like. If the proposals pass, the result will be a trillion-dollar ax for the future government. There is no money in the state treasury at the suggestion. There is nothing to take away from. This can also result in sanctions from Brussels.

Already on Wednesday, the measure was approved by the government. Subsequently, however, they must be on extraordinary part-session. The question is whether it is obsolete the governing party succeeds.

The thirteenth pension should be paid to retirees for the first time already in December this year. Each pensioner would receive 460 euros. People in early retirement 433 euros. In addition, however, the pension is not just about old-age pensions, but also recipients of invalidity, orphans, widows ‘and widowers’ pensions.

A sharp increase in pensions will cost the state treasury hundreds million. The Council’s budget estimate roughly speaks of an amount EUR 581 million. Economist Ján Šebo from Matej Bel University counts on EUR 690 million. The prime minister himself estimated the expenses at 500 million eur. In any case, these are only this year’s estimates, with volume the amount of money paid will increase every year. In this year’s budget however, it only counts on the payment of the Christmas allowance. It costs the state 160 million euros. Pensioners with the lowest pensions so in December they will receive at least a one-off contribution of € 200.

(Click on the image enlarge, open in new window)

Family allowances should also go up. And since January 2021. Parents should thus receive 50 euros for each child, instead the current EUR 24.90. “A family with two children improves every year by 600 euros, “said Prime Minister Peter at the presentation of the proposal on Tuesday Pellegrini. In total, family allowances are received for more than a million children. The state treasury would thus cost the state treasury 300 million euros.

However, the incumbent government has committed itself to moving towards a balanced one budget. Slovakia should have it next year. After the approval of pensions in addition, and an increase in child allowances, however, we can completely on it to forget.

For the time being, the Ministry of Finance is reluctant to propose. Estimate its effects he does not want to, as according to his spokeswoman Alexandra Gogová, the exact ones are not known parameters of both measures. “If the proposals are approved, the ministry will finance, within the budget options, seek resources to cover them. Already now, however, we can say that given the spending limits for this year it will be a very difficult task, “says Gogová.

The budget approved by the government expects a deficit of 0.49 percent of gross domestic product (GDP). However, this is according to analysts too optimistic view. “For 2020, we estimate the current deficit at almost 1.8 percent of GDP, “said the President of the Council on Budgets responsibility of Ivan Šramko.

If the 13th pension were added at the end of the year, the deficit would increase by 0.6 percentage points. It would reach 2.4 percent of GDP. In that in this case, however, Slovakia would face sanctions from the European Commission.

In addition, the government would be in breach of the expenditure ceiling it has not yet adopted at the end of last year. He forbids spending more money than agreed in the approved budget. “If this commitment is kept, this year the deficit may approach the 0.6 percent mark, “said Šramko.

If the government wanted to comply with the approved ceiling, it would have to cut others expenses. But where? Economist Ján Šebo from Matej Bel University in Banská Bystrica Bystrici sees space, for example, in the distribution of child allowances. Well, since it should increase, it will probably not be the way. Cancellation is also possible parental allowance. However, the outgoing government on January of this year increased. “Alternatively, we could tell our parents that we are in favor primary and secondary school will pay full tuition in the amount of approximately 1,200 euros per year, “says Šebo. Well, it wouldn’t have to be in the coming years either enough. “In 15 years, we would have to add the full payment procedures at outpatient doctors, “adds Šebo.

Hard life in retirement

Efforts to increase pensions are not surprising. Interested in getting what the most votes of the elderly led the incumbent government late last year to set the pension ceiling. The increase was a similar move minimum pensions. Retirees are once of the strongest constituencies. And it’s not just the old ones. Currently, more than 1.4 million Slovaks receive some form of pension.

However, pensioners themselves are also pushing for the introduction of the 13th pension. “With this request, we have addressed all political parties, including those outside Parliament. We have not heard openly from anyone, “says the head of Jednota pensioners of Slovakia Ján Lipiansky. According to him, the answers differed only in what the pension should look like.

Lipiansky points out that pensioners do not live easily in Slovakia. “For In addition, every euro is good for a Slovak pensioner, ”he says.

The average pension in Slovakia reached the value in January 2020 EUR 477.14. However, most people retire not so much. The statistics are distorted by higher pensions of new pensioners.

“After forty years of work, my pension is less than 400 euros. When I deduct rental and energy fees, I have less than a lifetime left 200 euros a month, “says pensioner Ivana Jankovičová from Prievidza. According to her, many older people cannot pay from the pension to the dentist ceramic seal and some also have problems with the payment of surcharges for medicines. Herself for a low pension works.

“I solved the bad financial situation by going to Austria, where I, A 66-year-old woman cares for a 90-year-old pensioner, “says the pensioner from Prievidza. Jankovičová saves most of the money she earns. He wants to to have a reserve for times when he will no longer rule. Babysitters of the old people in Austria usually work for a trade, in two weeks they earn from 800 do 1 200 eur.

Higher taxes or foreigners

Currently, social security contributions are paid for the payment of one pension more than two working people. If nothing changes on the current setting up a pension system, in 2030 it will be exactly two people. In 2060, one employee will work per pensioner.

“If the old-age pensioner is to have a compensation rate of 50 percent average wage, then this worker would only have to pay premiums half of his salary, “says Šebo. But we would still take something from him health insurance, something in income tax, something in value added tax value and excise duties, something on local taxes, ”adds the economist. “In this case, the tax burden should be around 80 percent of earnings, “explains Šebo.

It can partially solve the problem of the lack of working people opening the domestic market to people from abroad. Generous German pension Today, the system is also drawn by working Slovaks, who have gone there for higher education platmi.

Slovak wages are already attracting Serbs and Ukrainians. “In your main I will earn four times more in the city than at home in Serbia, “says Nella Stevanovic from Serbia. She currently works in one for 800 euros net from industrial parks around Bratislava. However, her dream is to get on better paid job in Germany.

By way of payment of 13 pensions or higher child allowances may be also an increase in contributions for workers. “It simply came to our notice then considering that when there are 13th and 14th salaries in Slovakia, we can also allow the 13th pension. This reasoning has a flaw in beauty. From 13. a 14. no salary is paid and no thirteenth pension is payable, ‘ says Iness analyst Radovan Ďurana.

The promotion of a pan-European one can also bring more money to the budget robot taxation.

(Click on the image enlarge, open in new window)