Serbia’s Parliament: ‘Swiss formula’ for pensioners, income classes in 2021

NEWS 06.12.201912:10

Serbia’s Parliament passed laws on pension system and income classes in state sector on Friday, opting for the ‘Swiss formula’ for 1.7 pensioners in the country and postponing the decision on income classes for 2021, although the changes were planned for the next year, the Beta news agency reported.

ćSwiss formula’ means that the pensions in Serbia will be adjusted to 50 percent of inflation and 50 percent of an average wage.

The new law also stipulates that those living in a civil partnership can inherit each others’ pensions if they have lived together for at least three years or if they have children.

On the other hand, those employed in the state sectors will have to wait until 2021 for a law which will determine the income classes, though it has been announced for the beginning of next year.

The postponement was needed, as the Government explained, “to avoid the violation of financial sustainability of the Republican, provincial and local budgets.”