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From March, old age and disability pensions are going up. „Historical indexation”

01.03.2023

The historically high indexation of old age and disability pensions has become a fact. Some seniors have already received their indexed benefits – said the Minister of Family and Social Policy Marlena Maląg during a press briefing on Wednesday. From March, benefits will increase by an indexation rate of 114.8%, but not less than by PLN 250.

From March, old age and disability pensions are going up. „Historical indexation”

Historical indexation

From 1 March, the minimum old age pension, as well as the lowest disability pension for total incapacity for work, social pension and survivor’s pension increase from PLN 1,338.44 to PLN 1,588.44, i.e. by 18.68%. The increase in the lowest old age pension in 2023 in relation to 2015 will already amount to 80.4% (i.e. from PLN 880.45 to PLN 1,588.44).

The percentage indexation with a guaranteed minimum increase by PLN 250 will mean that persons receiving lower benefits will get more money than if only the percentage indexation was carried out, according to the statutory rules.

Minister Maląg reminded that in 2015 PLN 3.6 billion had been allocated for the support for seniors. This year, its amount will be be twenty times higher. In total, the government will allocate a record-breaking amount of PLN 44 billion for this year’s indexation of benefits, and expenditures for all measures and programmes supporting seniors will reach the level of PLN 70 billion in 2023.

In a month, we will start paying the 13th pension and the government is working on including the 14th pension, which this year will also be transferred to seniors, into the calendar for good – said Minister Maląg.

More left in pockets

It is worth mentioning that last year we increased the tax-free amount to PLN 30 thousand, which means that old age pensioners receiving benefits up to PLN 2,500 do not pay tax at all, and others pay less – said the Deputy Minister of Family and Social Policy Stanisław Szwed.

The Deputy Minister also reminded that more than 700 thousand people had already made use of the benefit granted to persons completely unable to work and live independently. The government has allocated more than PLN 11 billion for this purpose.

In turn, more than 72 thousand persons, mainly women, made use of the parental supplementary benefit, which came into force exactly four years ago. The benefit is granted to those who have brought up at least four children, giving up professional work or working too short to have the right to even a minimum old age pension. The government allocated about PLN 1.78 billion for the Mother 4+ programme.

In turn, the Law and Justice government allocates annually PLN 100 million for activation programmes – Senior+ and Active+. They provide not only an opportunity to spend time in an interesting manner, but also have educational values, offering classes on broadly understood security, concerning, for example, protection against fraud and extortion of money.

President of ZUS on indexation

Professor Gertruda Uścińska, President of ZUS, added that the „indexation fully compensates for inflation in annual average terms for the previous year, and is even higher”. In the years 2016-2023, the cumulative effect of indexation of benefits is 41.4% - specified Professor Uścińska during the briefing.

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