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Serbia's parl approves Swiss formula pension indexation

Author Radomir Ralev
Serbia's parl approves Swiss formula pension indexation milosljubicic/

BELGRADE (Serbia), December 9 (SeeNews) – Serbia's parliament has approved a law introducing the indexation of pensions according to the Swiss formula as of January 1, 2020, the government said. 

According to the law, the pensions of 1.7 million retired people in Serbia will be indexed to inflation and nominal wage growth, the government said in a statement on Friday. 

The parliament has also passed a law that postpones to 2021 the transition to a new salary setting system in the public sector through the introduction of salary bands, the government said.

The lawmakers also approved an amendment of the Law on Compulsory Social Security Contributions which reduces the pension contribution rate to 25.5% from 26%.

Last month, the parliament approved the 2020 budget targeting a deficit of 20.2 billion dinars ($192 million/172 million euro) equivalent to 0.3% of the projected gross domestic product (GDP).

(1 euro = 117.527 dinars)