Poland renews attempt to cut retirement age, still sees PLN 40 bln public sector impact 2015-19

Poland will renew its attempts to roll back retirement age to 60 for women and 65 for men as of January 1, 2016 and sees a negative impact of PLN 30 bln for the state budget and PLN 40 bln for the broader public finance sector in 2016-2019, according to legislation submitted to Parliament by the presidential office.

In the longer term, as spending on lowered retirement age increases, “lowering retirement age requires undertaking legislative measures that will allow to generate financial means for covering increased spending of the pension fund,” the draft reads without offering estimates on increased spending over that longer-term.

Such revenue measures longer-term would include reducing the scale of civil-law contracts, eliminating the practice of registering only a portion of the actual wage (thus lowering the scale of premiums paid) and reducing scale of employment in the shadow economy.

mbn/ gty

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