In the first quarter of 2024, pensioners and pensioners will undergo indexation. Benefits are expected to increase, but probably less than we thought.
- Indexation of pensions in 2024
- Prime Minister Tusk assures that pensions will be indexed
- How much will pensions increase from March 1, 2024?
In March 2024, pensioners and disability pensioners will have their payments indexed. This means they should increase, but there are many signs that the final indexation level will be lower than expected. However, Prime Minister Donald Tusk does not intend to give up his election promises; he assures that his government will not only maintain benefits, but will also provide support to citizens.
Indexation of pensions in 2024
Indexation of pensions and annuities is provided for by the Law of December 17, 1998. According to it, benefits for pensioners should be indexed in March of each year.
In 2023, pensions and annuities grew by a whopping 14.8 percent. There are many signs that next year it may be lower - according to assumptions adopted by the Council of Ministers, it should be 12.3%. However, Donald Tusk assures that repeated indexation is possible, which will depend on the level of inflation.
Prime Minister Tusk assures that pensions will be indexed
The Prime Minister’s promises indicate that a second round of indexation will take place in the autumn, when the Central Statistical Office’s inflation data for the first half of 2024 is received. “As we promised, we will immediately introduce a second indexation of pensions for the year when inflation exceeds 5 percent,” he said in his disclosure.
Data from the National Bank of Poland shows that the average inflation rate is expected to be 4.6 percent. The European Commission’s forecasts assume inflation at 6.2%.
How much will pensions increase from March 1, 2024?
With an expected indexation level of 12.3 percent, from March 1, 2024, the minimum pension amount will be PLN 1,783.82 gross. For retirees eligible for higher benefits, benefits will be increased as follows:
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a pension of PLN 2,000 gross will increase to PLN 2,246 gross.
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a pension of 2.5 thousand PLN gross will increase to 2,807.50 PLN gross.
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a pension of 3.0 thousand PLN gross will increase to 3,369 PLN gross.
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a pension of 3.5 thousand PLN gross will increase to 3930.50 PLN gross.
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pension 4.0 thousand PLN gross will increase to 4,492 PLN gross.
According to the National Bank of Poland, inflation in 2023 will be lower than predicted. This may affect the real indexation value, which will be not 12.3%, but 11.7%.
Source: Wprost
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