zaterdag 3 december 2022
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Somohardjo in favor of raising minimum pension

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Minister Bronto Somohardjo of the Interior (Biza) is in favor of making a new nomination, whereby the minimum pension benefit will be raised from SRD 300 to SRD 1350. This means an indexation of 450. The General Pension Act 2014 states that the Pension Council is the body that makes the recommendation to the government for indexation of the pensions at the General Pension Fund.

Indexation refers to the adjustment of incomes or benefits to inflation so that purchasing power remains the same. It is Minister Somohardjo intention to discuss indexation within the Council of Ministers. After it has been approved the aim is to have indexation take effect from January 2023.

The General Pension Act 2014 obliges every working person to participate in the pension scheme of this Act with the General Pension Fund, if it cannot be implemented elsewhere. Against this obligation, the law guarantees that the accrued pension may not erode. This is achieved by indexing every three years and if there are reasons to do so. As prescribed by law, the indexation must be done by state decree.

Minister Somohardjo said that the retirees have worked hard to build our nation so they deserve a good old age and he will give all his support to that.







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