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This will be a record indexation of pensions in 2023. We have calculated how your pension will grow – check! [7.01.2023 r.]

This will be a record indexation of pensions in 2023. We have calculated how your pension will grow – check! [7.01.2023 r.]

This will be a record indexation of pensions in 2023. We have calculated how your pension will grow – check! [7.01.2023 r.]

In March 2023, the indexation of pensions and pensions will be carried out, which will be record-breaking due to the very high inflation. The assumed indexation index will amount to as much as 113.8 percent. In addition, persons with lower pensions will be able to count on quota indexation (the guaranteed increase will amount to PLN 250 gross). How much will your pension increase in March? Sample calculations can be found in the gallery.

According to the Ministry of Family and Social Policy, the lowest old-age pension, disability pension, survivor’s pension and social pension will increase in 2023 up to PLN 1,588.44 (currently PLN 1,338.44). The valorization index is to amount to as much as 113.8 percent. For comparison, the indexation in 2022 was only 107 percent.

The reason for such a high rate is very high inflation, which has been in Poland for months at a two-digit level. The government decided that in March 2023 an amount-percentage indexation would be carried out. This means that people receiving the lowest pensions will have a guaranteed increase (it was agreed that it will be PLN 250).

See calculations for exemplary amounts – from the minimum pension to benefits at the level of PLN 7,500 gross.

In order to finally answer the question of what the indexation index will be in 2023, we need to know all the macroeconomic data needed to calculate it (they will be known at the beginning of next year). However, the government estimates, based on forecasts, that next year, the indexation rate will be 113.8 percent. (this is the indicator we adopted when calculating the sample pensions in the gallery).

GOOD TO KNOW: The government calculates the increase in pensions and pensions in a given year, taking into account the following factors:

  • inflation in retirement households – an increase in the prices of goods that (statistically the most) are bought by seniors
  • real wage growth in the year preceding the indexation.

Pension indexation is always carried out in March. This is the average annual price index of consumer goods and services in the previous year, increased by at least 20 percent. real increase in the average salary in the previous year.

Next year will be thirteen and fourteen. Pensioners’ budgets must be protected – such a declaration was made by Prime Minister Mateusz Morawiecki during the September meeting with the inhabitants of Ryki County (Lublin Voivodship).

Increasing the minimum old-age pension above PLN 1,588 gross therefore means that “thirteen” and “fourteen” is an additional over PLN 3,170 gross for a large number of pensioners next year (in the case of the fourteenth pension, it should be remembered that people receiving higher benefits can only get a part of the “fourteenth”).

  • Good to know: The cost of indexation of pensions and payments of the 13th and 14th pension this year is approx PLN 43 billion. The indexation alone cost the budget PLN 14.7 billion.

There is no need to apply for indexation of the benefit. Each pensioner will receive a decision from ZUS on the new amount of his benefit.

In March this year, ZUS increased pensions by 7 percent. The increase affected 8.5 million people. After its implementation, the lowest old-age pension, disability pension and survivor’s pension increased to PLN 1,338.44 gross. The lowest pension for partial incapacity for work increased to PLN 1,003.83.

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