Vucic: Swiss formula cannot be only pension indexation model

The Swiss formula cannot be Serbia's only pension indexation model and a corrective model will be introduced as well, Serbian President Aleksandar Vucic announced Friday.

17 Jan 2020 12:28

BELGRADE - The Swiss formula cannot be Serbia's only pension indexation model and a corrective model will be introduced as well, Serbian President Aleksandar Vucic announced Friday.

In an appearance on Prva TV, Vucic said he would be particularly committed to continued growth of pensions.

"The 'Swiss model' alone is not the way... It means pensioners would live better, but not sufficiently better... There also has to be a corrective model," he noted.

In early December, the Serbian parliament passed amendments to the Pension and Disability Insurance Law introducing the Swiss pension indexation formula from January 1, 2020.

This practically means the pensions of Serbia's 1.7 million retirees will grow under a model aligning them with 50 pct of the inflation rate and 50 pct of the average wage growth rate.

Photo: Prva TV, screenshot

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