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Indexation of pensions in 2024. How much can pensions increase in 2024? There are government forecasts

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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 government’s forecasts, which were attached to the draft act on the allowance for village leaders. Valorization in the coming years is to return to single-digit levels.

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 valorization was based on amounts and percentages – 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.

Indexation of pensions 2024 – government forecasts

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In 2024 and subsequent years, the indexation may be much lower. This is the result of the government’s forecasts, which were attached to the draft act on the cash benefit for performing the function of a village mayor.

Business Insider was the first to write about the case.

In the regulatory impact assessment attached to the draft, we read that the valorization coefficient in 2024 was assumed at the level of 110.19 percent, in 2025 – 105.77 percent, and in 2026 – 104.15 percent. In subsequent years, the indexation is to be 104.42 percent.

Fragment of the regulatory impact assessmentSejm of the Republic of Poland

This would mean that, for example, in 2024, pensions and disability pensions will increase by 10.19 percent. This would be a higher indexation than in 2022, when benefits increased by 7%. For comparison, in 2021 the indexation was at the level of 4.24%. In 2020, the indexation was based on percentages – pensions and disability pensions increased by 3.56%, but not less than PLN 70.

The amount of increases in 2024, as well as in subsequent years, may change. It should be remembered that the final indexation rate is known several days before the indexation, when the Central Statistical Office provides data on real wage growth, on which the final indexation index depends. In addition, the rulers can also – as it was this year – decide on the amount-percentage indexation, with the minimum amount of the increase.

Main photo source: Shutterstock

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