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Socialists submit resolution proposal on increasing value of pensions

The opposition Socialist party has submitted a resolution proposal on increasing the purchasing power of pensions, the party's deputy leader said on Monday.

Lajos Korozs told an online press conference that the government’s flawed economic policies had resulted in an “Orban-inflation” of well over 20 percent over the past year. There is clearly a cost-of-living crisis in Hungary with one of the two million pensioners receiving less than 160,000 forints (EUR 430) a month.

The Socialists propose a return to the mixed indexation of pensions, which involves taking into consideration projected inflation and net wage increase to equal measure. He also called for restoring a ceiling for contribution payments, adding that with the polarisation of pensions over that past several years, one million forints should be introduced as a ceiling for pension contribution.

He said that in order to close the gap, in the next five years, everyone should receive pension increase indexed to inflation but in line with the mixed indexation system. The party also wants the old-age minimum pension to be at least 70 percent of the net minimum wage.

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