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Indexation of pensions 2023. Increases. Gross, net. Calculations after information from the Minister of the Family [TABELA]

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The pension indexation index in 2023 will be 114.8 percent with a minimum increase of PLN 250, the Minister of Family and Social Policy Marlena Maląg announced on Friday.

– This means that seniors will receive record raises this year. The lowest old-age pension, disability pension, survivor’s pension and social pension will amount to PLN 1,588.44. In turn, the lowest pension for partial incapacity for work will increase to PLN 1,191.33, indicated Minister Maląg. She added that the total cost of indexation in 2023 is approx. PLN 44.15 billion.

Old-age and disability pensions are indexed annually from 1 March.

Pension indexation index

The Central Statistical Office reported on Thursday that real average salary ratio in 2022 compared to 2021 amounted to 97.9, which means a decrease of 2.1 percent. Data is crucial for retirees and pensioners. They are used to calculate the valorization index.

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PAP/Maciej Zielinski

It consists in multiplying the amount of the benefit and the basis for its assessment by the indexation index. It 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 salary in the previous year.

“According to the #GUS data, the real average wage index in 2022 compared to 2021 was 97.9 (a decrease of 2.1%). This means that the indexation of pensions and disability pensions from March 1 will be – 114.8 percent.” – wrote the Pension Institute on Twitter.

In mid-January, the Central Statistical Office announced that the average annual consumer price index for households of pensioners in 2022 was 14.8 percent.

Pension market expert Oskar Sobolewski pointed out that “such a high indexation is primarily a consequence of record inflation”.

Indexation of pensions 2023

Pursuant to the Act amending the Act on pensions and disability pensions from the Social Insurance Fund, percentage-amount indexation will apply. A minimum raise of PLN 250 will be guaranteed. The minimum pension will increase to PLN 1,588.44 from the current PLN 1,338.44 gross.

We calculated how much benefits will increase with indexation at the level of 14.8 percent. In such a situation, the amount indexation (increase by PLN 250) will cover old-age pensions up to the amount of approximately PLN 1,700 gross (PLN 1,547 net).

Above this limit, the percentage indexation will apply.

Those who receive the highest benefits will benefit the most. Pensioners who now receive a benefit of PLN 2,000 gross (PLN 1,820 net) will receive PLN 269 more. In the case of people who receive a pension of PLN 5,000 gross (PLN 4,250 net), it will be more than twice as much, i.e. PLN 585 net.

Main photo source: Shutterstock

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