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Friday, November 22, 2024

ZDUS: In the Long-Term Care Act, retirees are treated discriminatorily

By: C. R., STA

The Association of Pensioners’ Societies of Slovenia (ZDUS) assesses that the Long-Term Care Act treats retirees in a discriminatory manner because retirees will be required to pay the long-term care contribution from their net pension. Although they are somewhat satisfied that the law was finally adopted, they also warn that it is an ambiguous legal act.

On Monday, the National Assembly of Slovenia (DZ) adopted the Long-Term Care Act in an urgent procedure. The law regulates long-term care rights, and as of July 1st, 2025, it introduces a mandatory one percent contribution. While the coalition believes that the law is of high quality, the opposition opposes it, particularly due to the mandatory contribution.

According to the newly passed law, employers and employees will pay a one percent contribution based on the gross salary, while retirees will pay one percent of their net pension. Self-employed individuals and farmers will pay two percent since they act as both employers and employees. The Ministry expects to receive 620 million euros annually through this contribution.

The fact that retirees will have to pay the mandatory long-term care contribution from their net pension rather than from the funds of the Slovenian Pension and Disability Insurance Institute (as is the case with compulsory health insurance) is seen by the Association of Pensioners’ Societies of Slovenia (Zdus) as a step away from the rule of law. They claim that it contradicts the Law on Pension and Disability Insurance. “Thus, retirees will have even less money at their disposal than they have,” they warned in the press release.

“All previous contributions for compulsory social insurance are paid based on gross salaries, and an increase in contribution rates typically does not lead to lower net salaries. Therefore, we believe that retirees are being treated in a discriminatory manner in this legal act,” they emphasised.

They also reminded that, on June 30th, the Commission for Health and Social Welfare of Zdus called for amendments to the law, suggesting that long-term care contributions and potential additional payments should be defined as deductible items for income tax purposes.

They also previously pointed out that the proposed law still does not provide a precise delineation between healthcare services covered by health insurance rights and those falling under long-term care. “The implementation of the law will show how these provisions will need to be supplemented, otherwise there is a risk of paying for the same services twice, namely once from public funds for compulsory health insurance and once from long-term care services,” they wrote.

Following the call, Minister for Solidarity Simon Maljevac invited the president of Zdus, Zdenka Jan, and the president of the Commission for Health and Social Welfare, Rosvita Svenšek, for a working meeting on July 3rd. “Our arguments did not convince the competent authorities, and the argument of power prevailed over the power of the argument,” Zdus was critical

The Centre for Social Research Cedra also warned that the public consultation on the long-term care law was too short and that the law is problematic for users, insured individuals, service providers, and assessors.

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