The pensions will be increased by at least 5.8 percent next year. In addition, a decision is expected on Wednesday afternoon that provides for further benefits for small and medium-sized pensions. The new model is controversial in the National Council. While the increase is almost too high for the NEOS, it is still too little for the SPÖ and FPÖ.
In detail, the inflation rate of 5.8 percent calculated between August 2021 and July 2020 should be compensated. Excluded are pensions that amount to at least 5670 euros per month. In addition, a tax-free and tax-free direct payment is planned, which will be paid in March. Up to a gross pension of, for example, 2000 euros, that is 30 percent of
In addition to the 5.8 percent and the direct payment, the recipients of a compensatory allowance also receive a monthly lump sum of 20 euros. For young retirees, there is another change. Those who retire in the second half of the year will receive at least half of the adjustment. Previously, the later in the year someone retired, the smaller the first increase in the pension.
Leichtfried: ‘One-off payments failed’
In the National Council, the SPÖ and FPÖ criticized the model presented on Wednesday. “The system of one-off payments has failed,” said SPÖ club boss Jörg Leichtfried. Moreover, even the current inflation, which is now in double digits, is not being compensated. FPÖ mandate Peter Wurm, an increase of 5.8 percent is also not enough. The retirees would also pay for the Corona policy and the “unspeakable sanctions policy against Russia”.
Rauch: “Smart and socially balanced”
The ruling parties, on the other hand, defended their model. According to ÖVP club boss August Wöginger, the previous anti-inflation measures must be taken into account. Minister of Social Affairs Johannes Rauch (Greens) described the model as “smart and socially balanced”. The increase in pensions is “budgetary sustainable”. NEOS social spokesperson Gerald Loacker was not entirely dissatisfied, although he pointed out that people who already have higher pension entitlements from other countries can also receive a one-off benefit.
Source: Krone
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