Changes in the tax law are one of the key reforms announced in the Polish Order. It will bring benefits to almost 18 million taxpayers, including about 8 million old age and disability pensioners. One of its assumptions is the lack of taxation of old age and disability benefits of up to PLN 2,500 gross. Thanks to this, 90% of old age and disability pensioners will have more money left in their pockets, and 65% of old age and disability pensioners will not pay the tax at all.

We listen to the needs of elderly people and we consistently expand actions as part of the senior policy – says the Minister of Family and Social Policy, Marlena Maląg.– Tax-free pensions will not only be a real financial support for persons receiving the lowest benefits. They are also, and maybe first of all, an expression of our concern for seniors and their everyday worries – adds Minister Marlena Maląg.

According to the new rules, the income of old age and disability pensioners will increase accordingly by the amount of tax. With a benefit of PLN 2,500 gross, it means an additional amount of PLN 2,250 a year. But seniors receiving higher benefits will also gain, because they will pay the tax only on the amount exceeding PLN 2,500 gross. For example – with a pension of PLN 3,500 gross, an old age or disability pensioner will be left with an additional amount of PLN 1,320 every year.

One of the pillars of the Polish Order

Tax-free pensions are one of the foundations of the Polish Order, which is aimed at reducing social inequalities and creating better living conditions for all citizens.

The regulations adopted by the Council of Ministers are another action aimed at strengthening the financial security of seniors in Poland.

Indexation of benefits, the thirteenth and fourteenth pension or the Mother 4+ programme introduced in 2019 are solutions which effectively improve the financial situation of seniors in Poland. Another solution is the tax-free pension implemented as part of the objectives of the Polish Order - specifies the Minister of Family and Social Policy, Marlena Maląg. – We send a clear message to our seniors: your financial security is very important to us, that is why we are introducing new tools.

Comprehensive senior policy

The comprehensive senior policy, in addition to the financial security of old age and disability pensioners, places great emphasis on the activation of seniors. Hence the “Senior+” programme, thanks to which homes and clubs for seniors are created and “Active+” programme promoting the increased participation of elderly people in social life. This year, the government will allocate PLN 100 million for the implementation of these programmes and by 2025 – PLN 500 million.

In 2021, the Law and Justice government will allocate about PLN 36 draft action for all solutions which are currently applied as part of the senior policy.

Tax-free pensions are to apply as from 1 January 2022.