Increase in pensions in 2023. Indexation, increases. How much will they take

We assume the indexation of pensions at the level of 13.8 percent – Stanisław Szwed, deputy head of the Ministry of Family and Social Policy, said in the Sejm. This is, among other things, related to high inflation in Poland. From March 1, 2022, the minimum pension is PLN 1,338.44 gross, after the announced increase, it would increase to approximately PLN 1,523 gross.

– We assume valorization pensions and annuities at the level of 13.8 percent, and the cost of this is about PLN 40 billion – Stanisław Szwed said in the Sejm.

He added that the family resort is ready to pay out the so-called 14. retirement. – It depends on the decision of the Council of Ministers, but I believe that it will be positive – he said.

In August 2022, the Minister of Family and Social Policy, Marlena Maląg, was asked about the valorisation of pensioners.

– When it comes to the final shape and the amount of indexation of pensions next year, we will know it in February 2023. Now the indicators indicate that it will definitely be over 10% valorization, it may even reach 13% – she said then.

Indexation of pensions and disability pensions

Indexation is calculated according to the formula specified by the act, taking into account the average annual price index and the real increase in the average wage. Old-age and disability pensions are subject to annual indexation from 1 March. It consists in multiplying the amount of the benefit and the basis for its assessment by the indexation index. This is the average annual price index of consumer goods and services in the previous calendar year, increased by at least 20%. real increase in the average wage in the previous year.

According to the latest data for August, inflation in Poland it was 16.1%, year on year. On Friday, preliminary data for September will be released and analysts expect that the rise in prices has accelerated even further. At the same time, in the draft budget for 2023, the government assumes that the average annual inflation will amount to 9.8%.

Long-term benefits are subject to indexation: retirement pensions, disability pensions, survivors’ pensions, teacher compensation benefits, as well as supplements to these benefits, e.g. nursing supplement or full orphan supplement, pre-retirement benefits and allowances, and social pensions.

Main photo source: Shutterstock

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