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New limits for working pensioners from June 1, 2023

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From June 1, 2023, pensioners who have not reached the general retirement age will be able to earn more. The new limit – the so-called safe lower threshold – will increase by almost PLN 300 to PLN 4,987.

Retirees and pensioners can earn extra money, but they must remember about income limits. They apply only to early retirees, i.e. those who have not reached the retirement age (60 years for women and 65 years for men) and pensioners. Exceeding the limits may result in Social Security (ZUS) will reduce or suspend the payment of the benefit.

The allowance limits change every three months.

Pensions and disability pensions – new income limits

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In order not to run the risk of being reduced pension or pensions, income cannot exceed 70%. average monthly salary. According to the announcement of the president of ZUS, from June 1 it will be the amount PLN 4,987.00currently it is PLN 4713.50.

There may also be a benefit suspended if the exceedance is higher than 130%. average salary. From June 1 it will be PLN 9,261.60and not PLN 8,753.60 as before.

This means that the safe lower threshold, which does not affect the reduction of the old-age or disability pension, increases by over PLN 273 gross, and the higher threshold, causing suspension of the benefit, by PLN 508 gross.

An increase in the average salary

The new income limits are higher because the average salary in Poland increased in the first quarter of 2023. The Central Statistical Office (GUS) reported that the average salary in the first three months of 2023 was PLN 7,124.26. For comparison, in the fourth quarter of 2022 it was PLN 6,733.49.

If your income exceeds 70% of average monthly salary, but it will not be higher than 130 percent. of this remuneration, this benefit will be reduced by the amount exceeded, but not more than by the amount of the maximum reduction.

Maximum reduction amount

The amount of the maximum reduction from 1 March is: – PLN 794.35 for old-age and disability pensions due to total incapacity for work, – PLN 595.80 for pensions due to partial incapacity for work, – PLN 675.24 – for survivors’ pensions to which one person is entitled.

As Wojciech Ściwiarski, spokesman for the Social Insurance Institution in the Mazowieckie Voivodship, explained in the communiqué cited by “Rzeczpospolita”, pensioners who retired after reaching the retirement age can earn extra money without restrictions.

But there’s an exception to every rule. It consists of pensioners for whom ZUS increased the calculated old-age pension to the amount of the minimum benefit (PLN 1,588.44 gross from March). If the income from work exceeds the amount of the increase to the minimum old-age pension, the benefit for a given period will be paid in a lower amount, i.e. without subsidy to the minimum, emphasized Ściwiarski.

“Some pensioners can also earn extra money without any restrictions. This group of people includes those receiving pensions for war invalids, military invalids whose incapacity for work arose in connection with military service, and persons receiving family pensions after being entitled to these benefits. This privilege also applies to pensioners receiving a survivor’s pension, which is more favorable in terms of the amount of the old-age pension due to the completion of the general retirement age.

Main photo source: Shutterstock

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