Minister of Labor and Social Affairs Erik Tomáš (Voice-SD) proposes to cancel the current form of parental pension. While currently working children can contribute to their parents’ pension with a portion of social contributions in the amount of 1.5 percent of the employee’s gross salary, or the self-employed’s assessment base, they could now deduct two percent of the income tax paid to their parents. The Minister of Labor wants to get 315 million euros in this way, which he wants to use to increase thirteenth pensions.
Minister of the Environment Tomáš Taraba.
The Deputy Prime Minister and at the same time Minister of the Environment for the SNS Tomáš Taraba speaks for the existence of the parental pension. “I voted for the parental pension as an opposition MP,” he said. According to him, there is still no coalition agreement on the fate of the parental pension.
“On the part of the SNS, we have not made a decision that we are against the existence of a parental pension,” he said. What he highlights about this benefit is that it ensures intergenerational solidarity between children and their parents. He claims that he does not know whether the problem with the parental pension is money or his setup. “We will definitely have this debate at the coalition council, but it hasn’t gone that far yet, it looks like it hasn’t gone into depth yet,” said Taraba. He emphasized that the institution of parental pension is absolutely fine. “As far as I know, Andrej Danko is a supporter of the parental pension,” added Taraba.
Four other representatives of the current government coalition also voted for the introduction of the parental pension in its current form at the beginning of October last year. Two MPs for Smer-SD voted for the current parental pension mechanism, both of them also dealt with pensions in the past.
It is about Ján Podmanický, who headed the parliamentary committee for social affairs during the second government of Robert Fico and was vice-chairman of this committee during the third government of Fico. The second MP for Smer-SD is Dušan Muňko, who headed the Social Insurance Company from 2008 to 2010 and from 2012 to 2016. The remaining two representatives of the current government coalition, who supported the current form of parental pension a year ago, entered parliament on the candidate list of the Slovak National Party. Filip Kuffa is the state secretary at the eco-resort, and Štefan Kuffa joined the Ministry of Culture as state secretary.
The change in the calculation of parental pensions will take more than 90% from their parental pensions. Jozef Mihál, an expert on taxes, levies and pensions, drew attention to this on the social network. “The new parental pensions will be less than a tenth of the current amount,” he claims.
As an example, he cites an employee with a gross salary of 1,000 euros. If the calculation of parental pensions did not change, during the next year her parents would each receive a parental pension in the amount of 15 euros per month, or 180 euros for the whole year. However, according to the intention of the Department of Labor, the parental pension is to be calculated as two percent of the income tax.
An employee will pay income tax of approximately 75 euros on a gross salary of 1,000 euros. Two percent of this amount represents 1.5 euros. According to the new plan, the parents of this employee will receive a parental pension of 1.50 euros per month, or 18 euros for the whole year. “That’s how it is when ideology wins over common sense in the pension system,” added the former Minister of Labor and Social Affairs.
Since the beginning of this year, a parental pension has been introduced in Slovakia. From the beginning of this year, a child working in Slovakia can pay 1.5 percent of his gross salary to each parent on a pension, or measurement basis.
It is based on the child’s income from two years ago. The amount of the parental pension is capped, it is calculated at a maximum of 1.2 times the average salary in Slovakia. With an average gross salary for 2021 of 1,211 euros, the maximum parental pension this year amounts to 21.80 euros per month for each parent. Children whose gross salary or assessment base amounts to 1,453.60 euros or more can give their parents such a parental pension. The parental pension does not affect the amount of the child’s contributions or the amount of his future pension.