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Indexation of pensions 2024. How much pensions may increase in 2024, there is a draft government regulation

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Indexation of pensions and disability pensions in 2024 may be at a lower level than this year. This would mean a slower increase in benefits. This is the result of the draft regulation of the Council of Ministers, which was published on the government’s website on Tuesday.

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

This year, the indexation was based on the amount and percentage – benefits increased by 14.8 percent, but not less than PLN 250 gross. The scale of the increases pensions was the highest in two decades inflation.

In 2024, the indexation may be lower. On Tuesday, the Government Legislation Center published a draft regulation of the Council of Ministers on the increase in the indexation of pensions and disability pensions in 2024.

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Indexation of pensions 2024

“With the forecast of the average annual price index of consumer goods and services for households of retirees and pensioners in 2023 at the level of 112.3% and the forecast of the real dynamics of the average gross salary in the national economy in 2023 at the level of 99.9% – the forecast indexation in 2024 is at the level of 112.3 percent.” – we read in the regulatory impact assessment attached to the draft.

It was reminded that consultations in the Social Dialogue Council did not result in an agreement on the amount of indexation of pensioners and disability pensions in 2024. “Due to the failure to agree, within the framework of the Social Dialogue Council, on the amount of increase in the pension indexation index in 2024, the Council of Ministers sets the amount of this increase at the minimum statutory level of 20%. real increase in the average salary in 2023.

According to government estimates, the total cost of indexation in 2024 with the above forecast ratio is estimated at approximately PLN 43.6 billion. As explained, this estimate, together with the financial effect of increasing the amount of additional annual cash benefits, the so-called 13 and 14 retirement.

The draft regulation was referred for urgent consideration by the Standing Committee of the Council of Ministers.

The indexation amount may change

The amount of benefit increases in 2024 may still change. We get to know the final indexation index several days before the indexation, when the Central Statistical Office provides data on real wage growth, which determines the final indexation index. In addition, the rulers may also – as it was this year – decide to index the amount and percentage, with the minimum amount of the increase.

Main photo source: Shutterstock

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