This is a good day for Polish seniors. As Prime Minister Mateusz Morawiecki informed during a press briefing, the Government decided to increase the indexation rate. Thanks to this, old age and disability pension benefits will increase by 7%. In addition, he informed that this year the fourteenth pension will also be paid, he also reminded about the thirteenth pension guaranteed by law. As he said, „this is an unprecedented increase.”

– We have to look at it together and compare to the indexation rates at the times of the Civic Platform. I appeal to all journalists for such impartiality, for a reliable comparison of the figures between 2014 and 2015, between the times of Mr Donald Tusk, the Prime Minister of Polish poverty, and the modern times when we do everything to improve the life of pensioners – stressed Prime Minister Mateusz Morawiecki.

Indexation

Given the macroeconomic indicators announced by the President of the Statistics Poland, i.e. the inflation rate in 2021 and the real increase in the average remuneration in 2021, with the 20% share of real salary growth in the indexation rate – the indexation rate of old age and disability pension benefits in 2022 would be at the level of 105.7%.

– For the tight budgets of old age and disability pensioners, the inflation rate of several percent may be more difficult to cope with than the inflation rate for the working population. In order to better secure the financial situation of seniors, we are amending the Regulation of the Council of Ministers of 7 July 2021 on the amount of increasing the indexation rate of old age and disability pensions in 2022, determining the amount of this increase at the level of 63.33% of real salary growth – says the Minister of Family and Social Policy Marlena Maląg.

In this situation, the indexation rate will be at the level of 107%.

What does this mean in practice? As the Head of the Ministry of Family explains, this change will result in a greater increase in old age and disability pension benefits and will meet the expectations of all old age and disability pensioners.

How much will be the lowest pension?

The lowest old age pension, disability pension for total incapacity and survivor’s pension will increase from PLN 1,250.88 to PLN 1,338.44, i.e. by PLN 87.56. In turn, the lowest disability pension for partial incapacity for work will increase from PLN 938.16 to PLN 1,003.83 – this is PLN 65.67 more.

How much does it cost?

The cost of indexation at the rate of 105.7% would amount to about PLN 15 billion. With the indexation rate at the level of 107%, the cost of indexation will amount to about PLN 18.4 billion, of which PLN 3.4 billion results from the increase in the real salary growth rate in the indexation rate from 20% to 63.33%.

Fourteenth pension to be paid this year either

Moreover, Prime Minister Mateusz Morawiecki announced that this year the fourteenth pension will be paid either – on similar terms as it was last year. The funds are to be received by eligible persons “in the autumn or late summer”.

Unlike the thirteenth pension, the fourteenth pension was paid taking into account the individual income situation of beneficiaries. The vast majority, about 8 million persons, received this benefit in its full amount while about 1.2 million – in the properly reduced amount.