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Gov't approves proposal to make employed pensioners pay wage contributions

A cabinet meeting on Wednesday approved a proposal to make pensioners who have taken on work pay an 8.5% wage contribution, Minister of Social Affairs and Employment Peter Kiss said on Thursday.

Those who pay the wage contributions for a full year will have their pensions raised by an annual 0.4%, Kiss said. The proposal aims to bring the age at which Hungarians retire closer to 62, as 94% of Hungarians retire before they reach retirement age. In future, people who opt to take early retirement must decide between working or receiving a pension. If they work, their wages must not exceed the minimum wage, Kiss said. Of Hungary's 191,000 pensioners under the age of 62, only 30,000 are employed. Kiss added that, due to short-term measures, the deficit of the pension fund could fall Ft 100 billion by 2010. (Mti-Eco)