Background information

The year-on-year inflation rate in Slovakia is the highest since June 2000. The value of inflation in June 2021 was still at the level of 2.9%, in June of this year it reached the maximum in the last 22 years at 13.2%. The Government of the Slovak Republic as well as the National Council of the Slovak Republic have approved financial assistance for seniors in the form of earlier payment of the 13th pension. This is assistance for seniors in a period of high inflation.

The Act No. 171/2022 Coll. amending the Act No. 296/2020 on the 13th pension proposes to pay the 13th pension in full in one go to all beneficiaries who will be entitled to it, already in July 2022. The law is effective from June 2022.

Content of measure

Recipients of old-age, early old-age, and disability pensions are entitled to an early 13th pension, as well as recipients of all survivors' pensions - widow's, widower's, and orphan's. With this Amendment to the Act on the 13th Pension (Coll. No. 296/2020 Coll.), the 13th pension will be paid in full in July 2022. With the expected number of recipients of pension benefits of 1.44 million people, the average amount will be approximately €209.60.

The maximum amount of the 13th pension in 2022 will be €300 - and it will be given to pension recipients in the amount of €234.42 and below. The lowest 13th pension in the amount of €50 is given to beneficiaries who receive a pension from €928.87 and above. It will be financed from the budget chapter of the Ministry of Labour, Social Affairs and Family of the Slovak Republic in the total amount approximately €301.2 million.

This is a compensation for the significant growth in consumer prices, as inflation for retired households reached an annual value of 9.9% in February 2022. Another reason is the expected increase in the year-on-year inflation rate for pensioner households for the first half of 2022 by 9.3%. This help in the form of earlier payment of the 13th pension is one of the government's measures for the most vulnerable population groups that have been hit by high inflation. Social Insurance Agency pays the 13th pension to pensioners automatically, therefore a special application is not necessary.

Use of measure

In July 2022 the Social Insurance Agency paid out the 13th pension to more than 1,432,000 persons. The total amount paid was €294 million.

Target groups

Workers	Businesses	Citizens
Does not apply to workers	Does not apply to businesses	Older citizens Pensioners People on social benefits

Actors and funding

Actors	Funding
National government Social insurance	National funds

Social partners

Social partners' role in designing the measure and form of involvement:

	Trade unions	Employers' organisations
Role	Informed	Informed
Form	Not applicable	Not applicable

Social partners' role in the implementation, monitoring and assessment phase:

• Unknown
• Main level of involvement: Unknown

Involvement

The Confederation of Trade Unions commented on the draft amendment to the 13th Pension Act in the legislative process. KOZ SR expressed a fundamental disapproval of the amendment to the law.

Views and reactions

The proposed legislation absolutely does not solve the poor economic situation of pensioners, and at the same time it will not bring any positive solution for this group of residents in their difficult economic situation. KOZ SR (TU SR) has already declared the need for a more prompt response by the government to the current development of the SR economy (increasing inflation) and thus the increase in the price of goods and services. In the current economic situation, due to the growth of goods and services, the valorization of pensions by 1.3% is insufficient, therefore the government should increase pension benefits as soon as possible, either by a lump sum or by a percentage increase.

Sources

• 04 May 2022: Zákon č. 171/2022 ktorým sa dopĺňa zákon č. 296/2020 Z. z. o 13. dôchodku a o zmene a doplnení niektorých zákonov ZÁKON zo 4. mája 2022, ktorým sa dopĺňa zákon č. 296/2020 Z. z. o 13. dôchodku a o zmene a doplnení niektorých zákonov ZÁKON zo 4. mája 2022, ktorým sa dopĺňa zákon č. 296/2020 Z. z. o 13. dôchodku a o zmene a doplnení niektorých zákonov (www.slov-lex.sk)
• 27 July 2022: Ústredie Sociálnej poisťovne informuje (www.socpoist.sk)