The Board of Directors of the Federal Institute for Pension and Disability Insurance passed the Decision on the advance adjustment of pensions at the rate of 3.5 percent, which has been applied since the beginning of this month.
This is a regular temporary adjustment of pensions prescribed by the Pension and Disability Insurance Act. The Federal Minister of Labor and Social Policy, Adnan Delić, told the pensioners that there is no reason to worry, because the difference to this advance adjustment will be paid to them already in September.
Temporary rate of 3.5 percent
The percentage of 3.5 percent – emphasizes Minister Delić, is a temporary and pre-calculated rate that is not final. Although pensioners are followed by their pension in August according to this calculation, the difference determined by the Federal Bureau of Statistics will be paid to them in September.
“When we talked about the increase, or the second regular adjustment of pensions, we were talking about projections that, when we at the government were working on amendments to the Pension and Disability Insurance Act, amounted to 5.2 percent, and in January it was 11.9 percent. In January, there was an adjustment that was slightly less, 11.2 percent,” said Delić.
He added that current statistical indicators indicate the possibility of a larger final increase.
“Now, all current statistical indicators say that it will probably be higher than 3.5 percent, but since it is an advance adjustment, it will be 3.5 percent, and in September the difference will be paid to that amount,” explained Delić.
The formula tracks wage and price growth
Otherwise, the Decision on advance adjustment was made on the basis of a formula that monitors the growth of gross wages and consumer prices.
Official statistical data are now awaited, which are kept in accordance with the Law on Pension and Disability Insurance of the Federation, which, Minister Delić emphasizes, is in line with the requirements of the Federation of Pensioners.
“We have fully complied with this and I can say that this is more than this government was able to do, given all the budget funds that were additionally needed to increase pensions this year. Instead of approximately five percent, as foreseen by the previous law, pensions will certainly be increased by 15, maybe more, which is a significant increase compared to what we had,” Delić pointed out.
Final data in August
The final cross-section of the consumer price index and gross wage growth will be in mid-August, after which pensioners can expect payment of the difference and an additional increase in pensions.
