CHANGES TO THE PENSION SYSTEM: NEW MINIMUMS AFTER ENFORCEMENT, ADJUSTED EARLY PENSIONS AND UPDATED MINIMUM PENSION AMOUNTS

From 1 July 2024, the subsistence minimum increased from €268.88 to €273.99 per month. This change will affect enforcement deductions from pensions, entitlement to an early old-age pension and the level of minimum pensions. What does all this mean for pensioners?

HIGHER MINIMUM LEFT AFTER ENFORCEMENT DEDUCTIONS

From 1 July 2024, the amount that a pensioner must be left with after enforcement deductions have been made will increase. The Social Insurance Agency (Sociálna poisťovňa) will inform every pension recipient concerned in writing during August 2024. This notice will also state the expected date on which the enforcement deductions will end.

Non-priority claims:

• The basic amount that must not be deducted will be 140% of the subsistence minimum, which is €383.58 per month.
• For each person to whom the pension recipient provides maintenance, a further 50% of this amount must be left, i.e. €191.79 per month.

Priority claims (except maintenance for a minor child):

• The basic amount that must not be deducted will be €273.99 per month (100% of the subsistence minimum).
• For each person to whom the pension recipient provides maintenance, a further 50% of this amount must be left, i.e. €136.99 per month.

Maintenance for a minor child:

• The basic amount that must not be deducted will be €115.07 per month.
• For each person to whom the pension recipient provides maintenance, a further €95.89 per month must be left.

As at 31 May 2024, the Social Insurance Agency had 19,920 pension recipients subject to enforcement deductions on its records.

NEW THRESHOLD FOR ENTITLEMENT TO AN EARLY OLD-AGE PENSION

From 1 July 2024, the increase in the subsistence minimum will also affect insured persons’ entitlement to an early old-age pension. After this date, entitlement to an early old-age pension will arise only if its amount exceeds 1.6 times the subsistence minimum, i.e. €438.40 per month.

The changes to the granting of early pensions, which took effect on 15 May 2024, brought a number of adjustments, including to the required number of years worked and to the method of calculating the benefit.

UPDATED MINIMUM PENSION AMOUNTS FROM 1 JANUARY 2025

From 1 January 2025, the increase in the subsistence minimum will also affect the amount of the guaranteed minimum pension. The lowest level of the minimum pension for 30 years of pension insurance will rise from €389.90 to €397.30 per month.

Table: Minimum pension amounts from 1 January 2025

These changes will ensure that minimum pensions better reflect the current cost of living and provide more adequate support to recipients of pension benefits.

For more information and details on how minimum pensions are calculated and on other related topics, visit the Social Insurance Agency’s website or contact our accounting firm.