Government Approves New Decree to Revalue Pensions Amidst Political Negotiations
On Tuesday, the government successfully approved a new decree aimed at revaluing pensions, following an agreement with the political party Junts. This development comes on the heels of a previous setback when Congress rejected an omnibus decree last Wednesday, which had proposed similar measures. Notably, both Junts and the Popular Party voted against the earlier decree, raising significant concerns among pensioners regarding the future of their financial support.
The initial worry stemmed from a 28% increase in pensions that had been approved by the Council of Ministers in December but was rendered uncertain due to the lack of a validating legal framework. While pensioners had received the raised amounts in January, sources from the Ministry of Inclusion, Social Security, and Migration cautioned that without new legislation, pension values would revert to their previous levels in February, resulting in a serious decline for many.
The ramifications of the rejected omnibus decree extended beyond merely contributory and noncontributory pensions. Other critical measures at stake included a proposed 6% increase in minimum pensions, improvements to widows' pensions that factor in family burdens, and enhanced allowances for dependent children in households with minors who have disabilities.
After several days of intense negotiations, the government has struck a deal that secures the necessary increases in pensions and related social measures through the newly approved decree. The agreement with Junts allowed for the lifting of their veto, contingent on the inclusion of modified housing assistance provisions.
As a result of this new legislation, pensioners will maintain the increases already applied in January, averting a crisis in February. Under the new decree, the minimum retirement pension for single-person households is now set at €12,241.60 per year. In cases where there is a dependent spouse, this amount increases to €15,786.40 per annum. Furthermore, pensions from the Mandatory Old Age and Disability Insurance (SOVI) will provide €560 per month for eligible individuals.
The swift resolution of this issue demonstrates the government's commitment to supporting vulnerable populations, particularly pensioners who rely heavily on these financial resources for their daily living expenses. As negotiations concluded positively, many in the public sphere are expressing relief that their pensions will not only remain intact but will also adjust to reflect necessary increases, providing a more stable financial future.
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