The Government adopted the draft Act defining urgent measures to increase the income of pensioners and to limit the rise in social security costs. The proposed Act is an attempt to ease and eliminate the consequences of the general rise in prices, which manifest themselves in the liquidity problems of operators and systemic problems in social security, resulting in pressure to raise fees. The proposed Act determines measures to mitigate the effects of the general rise in prices and help providers of social security services with the aim of limiting rises in fees, and determines the payment of greater remuneration for pensioners and those receiving compensation on the basis of disability. The main solutions are therefore the co-financing of measures in the field of social security and the provision of funds for co-financing institutional care costs and the payment of greater remuneration for pensioners and those receiving compensation on the basis of disability. In the proposed Act, the greater remuneration for pensioners will not count as income in the exercising of rights arising from the act regulating the exercise of entitlements to public funds. Neither will the greater remuneration for pensioners pay for contributions for mandatory health insurance.

The Decree determining the prices of natural gas from the system defines a new highest retail price for nurseries, primary schools and health centres, and the highest permitted retail price of gas for the alternative and primary supply of natural gas to households and joint household customers, primary social services, nurseries, primary schools, health centres and for small business customers. The institutes of alternative and primary supplies, and the broadening of the definition of protected customers, were introduced by the recently adopted Act amending the Gas Supply Act. The regulation adopted today introduces price regulation for these types of customers. The Government’s main guiding principle in adopting measures to counter rising prices is concern for the whole population. The Government is aware that in a time of rising energy costs – due to the economy reviving after the pandemic and Russia’s invasion of Ukraine – it must act quickly and decisively.

The Decree concerning the legal succession of the Bank Asset Management Company (BAMC) defines the simplified merging of the BAMC and SSH. By merging with the BAMC, the SSH will acquire all of DUTB’s assets, and all its rights and obligations. It must be emphasised that despite the adoption of the decree, the real estate at the DUTB’s disposal will be used for resolving the housing issue. In three weeks, the competent ministries – the Ministry of the Environment and Spatial Planning, the Ministry of Finance and the Ministry of Labour, Family, Social Affairs and Equal Opportunities – will prepare the basis for the accelerated construction of non-profit housing units.

The Government was briefed on its negotiating position for consultations with social partners concerning the determination and alignment of the minimum wage. The Minimum Wage Act prescribes the procedures that affect the level of the minimum wage, i.e. the determination of the minimum wage on the basis of the established minimum living expenses and an annual alignment that at least corresponds with the level of inflation.