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Indexation of pensions and disability pensions 2024. How much will benefits increase. The government has prepared a project [TABELA]

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The government is preparing for another indexation, i.e. increases in pensions and pensions. According to the information published on Monday in the list of legislative works of the Council of Ministers, next year’s valorization index will include the minimum real increase in the average wage required by law.

Old-age and disability pensions are indexed annually from 1 March. It consists in multiplying the amount of the benefit and the basis for its assessment by the indexation index. It is an average annual price index of consumer goods and services (inflation) in the previous calendar year, increased by at least 20%. real increase in the average salary in the previous year.

Costs of pension indexation

On Monday, the list of legislative and program works of the Council of Ministers included information on the draft government regulation on the amount of increase in the pension indexation index in 2024. The information indicated that next year’s index will be increased by the statutory minimum, i.e. by at least 20 percent. real increase in the average salary in the previous year. Such a proposal was also adopted at the meeting of the Council of Ministers on June 13, 2023. During the June press conference after the government meeting, the Minister of Family Marlena Maląg announced that, according to estimates, in 2024 pensions and disability pensions will increase by at least 12.3 percent.

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“At the Council of Ministers, we adopted assumptions for the indexation of next year’s pensions and pensions. The indexation is expected at the level of 12.3 percent. Its entire cost, including the indexation of the thirteenth and fourteenth pensions, will amount to over PLN 43 billion,” said Minister Maląg.

How much can pensions increase after indexation in the amount of 12.3 percent. in 2024TVN24 Business

Negotiations of the indexation index

Increasing the indexation of old-age and disability pensions, in the part concerning the real wage growth, is negotiated annually within the Social Dialogue Council (RDS). However, during the meeting of the council on July 10, 2023, no common position was developed in this regard. In the event of failure to agree on a common position within the RDS the Council of Ministers is obliged to specify, by means of a regulation, within 21 days from the date of completion of the negotiations, the amount of increase in the indexation index, taking into account information on the forecasted macroeconomic values, including the value of the inflation index, constituting the basis for the preparation of the draft budget act for the next year.

Currently, the lowest pensions, disability pensions, family and social pensions amount to PLN 1,588.44 gross. The lowest disability pension for partial incapacity for work is PLN 1,191.33 gross. This year’s indexation rate is 14.8 percent.

Read also: Pensions will increase accordingly. Calculations

Main photo source: Shutterstock/ Dariush M

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