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Now the indexation of pensions even higher than expected: why? If the benefits increase, the lowest pension

Despite inflation, which in August exceeded 16 percent, the fourteenth pensions will be the last money for this group of Poles this year. Inevitably, the weight of attention and discussion is shifted to the next year: the expected indexation of pensions, additional benefits and – what is equally important – an increase in the cost of living, the aggregate indicator of which is the level of inflation. It will be the highest in the history of the current pension system and will amount to approx. 13 percent. This indicator is confirmed in the draft state budget for 2023, which the government sent to the Sejm on Tuesday, August 30.

This amount results from the method of determining the indexation index. In accordance with the applicable law, the reference point is the inflation rate from the previous year (in this case – 2022, because the indexation is set on March 1) and at least 20%. forecast wage growth.

Although the wage growth has slowed down, inflation continues to accelerate and, according to many analysts, it will not peak until February. This means that the double-digit indexation provided for in the draft budget act for 2023 will certainly be, but the number may be even higher than forecast.
It must also be remembered that the budget assumptions (in addition, only at the stage before the adoption by the Sejm) are one thing, and the final decisions – the other. these will probably only come in February 2023, although the experience from the past years shows that the forecasts made in a known mode, even if they differ from what then becomes hard law, then only slightly, “in pennies”.

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