Slovenian Leaders Outline Expectations for New Government on Pensions, Public Sector Pay

Slovenian lawmakers are poised to confirm the country's 16th government, which will be the fourth led by Prime Minister Janez Janša. As the parliamentary debate unfolds, leaders from diverse societal sectors have articulated their hopes and expectations for the new administration's agenda.

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One of these is that the formula for regular adjustment will be maintained at 50 percent of inflation and wage increases, it is written that the adjustment will be twice a year, it also foresees a demographic reserve fund, which is a positive forecast for the long-term stability of the pension system.

Marijan Papež, Director General of the Pension and Disability Insurance Institute, views certain commitments in the coalition agreement favorably for pensioners. He highlighted the potential for maintaining the regular adjustment formula at 50% of inflation and wage growth, with twice-yearly adjustments. The proposed demographic reserve fund is also seen as a positive step for the long-term stability of the pension system.

Papež also noted the coalition's intent to address inequalities, particularly in pension calculation percentages. The agreement suggests differentiating mandatory health contributions based on pension amounts and eliminating contributions for long-term care, a measure already included in an emergency law. He anticipates that the pension reform, agreed upon with social partners, will continue, as no current government parties opposed it during its adoption.

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The coalition agreement also indicates the elimination of inequalities, especially in the calculation percentages. It is also written that the mandatory health contribution would be differentiated based on the amount of the pension, and the elimination of the contribution for long-term care is already foreseen by the emergency law.

Branimir Štrukelj, Secretary-General of the SVIZ trade union, expects public education to maintain its standing, emphasizing its contribution to quality of life and equality in Slovenia. As president of the Confederation of Public Sector Unions, he addressed the proposed separation of pay systems. Štrukelj stated that public sector unions had negotiated a new pay system over two years, and the primary goal is its completion, with wage adjustments scheduled until January 2028.

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The basic goal is that this pay reform is completed, wage adjustments will take place until January 2028. A necessary condition for any changes is that we first complete this transitional period and that the key elements of the pay reform are implemented, which is especially, but not only, the harmonization of wages in accordance with this signed agreement.

Štrukelj expressed a lack of clear indications on how separate pay systems would be implemented. He cautioned that any government attempts to favor specific groups within the public sector would be difficult to achieve. The focus remains on finalizing the current pay reform, with key elements, including wage harmonization, needing to be executed as agreed.

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However, it should be noted that if the government has favoritism or benefits in mind...