Government approves pension reform proposal

8. 5. 2025

Ministry of Labour, Family, Social Affairs and Equal Opportunities

The Government adopted the text of the proposed Act Amending the Pension and Disability Insurance Act. Amendments are necessary primarily to adapt the system to the ageing population, while the reform is also part of commitments under the Recovery and Resilience Plan.

The proposed measures are the result of social dialogue and discussions among key stakeholders on the further development of pension and disability insurance in Slovenia, which is one of the key mechanisms for ensuring the welfare of pensioners and persons with disabilities.

The key objective of the pension and disability insurance system reform is to establish a fair, solidarity-based, transparent and trustworthy system that will ensure adequate rights, decent pensions for current and future generations, and a secure old age, while also ensuring the financial sustainability of the pension system. The changes will not be introduced hastily, but will take effect after an appropriate transition period to allow individuals to adjust their retirement plans and system operators to adjust their operations.

The proportion of people aged 65 and over will increase from 20 to 30 percent of the total population over the next 25 years, representing a 50 percent increase in the proportion of retired persons. Negative demographic projections pose risks to the fiscal sustainability of the pension system and the level of pensions, as well as to the labour market situation, which is characterised by low labour force participation among older people and late entry of young people into the labour market. All these social circumstances also require adjustments to the pension system, which is directly linked to the demographic structure of the population and, in the long term, reflects the number of potential contributors to the system on the one hand and the number of potential recipients on the other. The main objectives of the proposed amendments are therefore to prepare the system for the demographic transition and to improve the well-being of existing and future pensioners. By ensuring the fiscal sustainability of the system and increasing the transparency and clarity of individual parameters — and the system as a whole — public confidence in the pension system is expected to improve.

The reform of the pension and disability insurance system proposes comprehensive solutions which, through a broad public debate and social dialogue, aim to create a fair pension system that no longer requires frequent, and often arbitrary, emergency interventions.

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