Pensions rose this year by a record 14.8 percent, and the reason for this significant increase was very high inflation, which is one of the main factors in calculating the index of the pension index. Based on the provisions of the Budget Law, we can already calculate the size of the indexation of pensions in 2024. Calculations for specific amounts can be viewed in the exposition. Check how your pension will grow in March 2024.
According to the latest budget revision, the inflation rate has been changed – so it reaches 12% on average in Poland. (versus 9.8% projected in the original budget law). Another important value for retirees is the average annual consumer price index for families of retirees and retirees for 2023. The pension index in 2024 will be calculated mainly on its basis (The second value taken when calculating the valuation index is the real increase in average wages.) The so-called. According to forecasts, pension inflation will amount to 12.3%. This means that the indexation of pensions will reach at least this amount.
Based on the inflation rate of pensions, we can calculate what the valorization of pensions might look like in 2024. It will be held, as always, in March. Calculations of amounts from minimum pensions can be viewed in our photo gallery:
The calculations are a forecast of the pension index in 2024. The final macroeconomic data needed to calculate it will be provided by the Social Insurance Institution in February – then we will find out if the index of 12.3 percent will be maintained. However, the inflation forecast adopted in the budget law is largely consistent with other analyses. It should also be noted that the average wages in Poland in the previous year did not rise in real terms, so the second factor needed to calculate the indexation index was not taken into account. How it will be in 2023 – we will find out a few weeks before the indexation.
It’s a separate issue minimum pensions in 2024. Currently, the total is PLN 1588.44. If the above-mentioned 12.3 percent increase is assumed, the pension will rise to PLN 1,783.84 (that is, less than PLN 200). However, we must remember that in previous years The government has used the percentage share method to calibrate pensions with a guaranteed minimum increase. Such a system is beneficial for retirees who receive the least benefits. Let us remind you that in March 2023 the guaranteed amount of increase was a total of PLN 250. Which option will the government choose? We’ll likely find out in a few months.
This year, retirees can count on another cash injection. In the near future, they will receive the fourteenth pension, which – like the “thirteenth” – is exactly the same as the minimum pension in a given year. The law requires that this benefit be implemented annually. However, from the fourteenth pension, you must pay tax and a health contribution, Not everyone will get the full benefit.
And the law stipulates that, as in previous years, the fourteenth pension is paid on the basis of the income criterion. Retirees entitled to a “normal” pension up to a total of PLN 2,900 will receive the full fourteen. For seniors whose pension is higher, the “PLN for PLN” principle will apply. How much will retirees receive as part of the fourteenth pension? See calculations of expected net amounts in the gallery.
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