Government to introduce penalties for premature retirement?

The daily newspaper Blic writes that the Government should announce July its decision on the introduction and amount of penalties for premature retirement. This measure will take effect January 2014, and it is most likely that these penalties will be at 4% annually.

For example, if we take an average pension of RSD 25,000, retiring one year early will cut the pension by RSD 1,000, while retiring three years early will reduce it by 3,000 dinars. Retiring early will be possible up to five years prior to reaching the regular age limit.

Introduction of penalties is necessary because as many as 70% of men and 50% of women in Serbia retire early. Of all those who retired last year, only 45.8% reached the stipulated age limit for retirement.

The Serbian government has also announced that the age limit for retirement for women should be raised by six months a year starting 2015. This means that in 2020, women will retire at the age of 63.

Vlada Republike Srbije

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Serbian government

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