The time is running out for the adoption of the new Law on PIO, a law that could bring about a 17 percent increase in pensions to pensioners in the Federation.
In order for the new calculation to come into effect on January 1, it is necessary for the law to be adopted by the end of the year. Currently, it has not yet been introduced to the parliamentary procedure, which leaves less and less room for this process to be completed on time.
The Federal Minister of Labor and Social Policy, Adnan Delić, explained that everything was done with the aim of pensioners receiving a more significant increase in income compared to the one provided by the existing adjustment model.
He pointed out that the new calculation predicts an increase in pensions of approximately 17 percent. This would raise the lowest pension from the current 599 marks to around 700 marks.
He emphasized that these assessments were made together with the PIO Institute and the Federal Ministry of Finance. They are the only ones authorized to estimate the fiscal amount that such a reform would require.
Delić reminded that this is a large budget intervention that requires stable income and political will to improve the position of one of the most vulnerable social groups.
He said that the goal is for the law to enter into force on January 1 of the following year. Thus, the increase would be visible already at the first payments in 2026.
The New Year’s deadline is fast approaching, will there be an increase in pensions?
However, the New Year’s deadline is fast approaching. The law-making procedure includes several stages.
The law has not been sent to parliament. Even with an expedited procedure, there is very little time left to complete the entire process on time.
As the days pass, it is less and less realistic that the reform will be adopted. At least not within the deadlines previously announced by the Ministry.
The public remains hopeful that political actors will come to an agreement as soon as possible so that pensioners will receive the announced increase. However, the reality of the current pace shows that the deadlines could be unattainable without the agreement and accelerated action of all institutions involved in the process, writes RTV Slon.
