Honorary benefits for centenarians guaranteed by the Act of law and indexed annually
06.08.2024
Honorary benefits for individuals who have reached one hundred years of age will be guaranteed by the Act law soon and, moreover, they will be indexed on an annual basis. The Council of Ministers has just adopted a draft Act on this issue. This is an important change for several thousand Polish seniors. Today, around 6 thousand centenarians receive the benefit, however, this number will increase year on year.
On Tuesday 6 August this year the Council of Ministers adopted a draft Act prepared by the Ministry of Family, Labour and Social Policy on an honorary benefit for people who have reached the age of one hundred. The aim of the proposed solutions is to replace the current mechanism for granting the benefit and to normalise legally a long-standing tradition, as well as to ensure predictability of the legal situation for the oldest part of society.
At present, the monthly honorary benefit for centenarians is granted by the President of the Social Insurance Institution pursuant to a decision taken by the Prime Minister in 1972 and it is treated as an “exceptional benefit”. In the opinion of the MRPiPS, it is time for a change.
Honorary benefit to be paid ex officio
Persons with Polish citizenship who have reached the age of 100 will be eligible to receive an honorary benefit and the money will be paid ex officio.
Previously, the benefit corresponded to the base amount in force when the person reached the age of 100. The base amount changes on 1 March each year, so the amount of the honorary benefit varied.
Annual indexation
The proposed regulation introduces a major change in this respect. As early as 2025, the amount of the honorary benefit will be decoupled from the base amount; the honorary benefit will instead be indexed in accordance with the pension index.
This means increasing the amount of the benefit for those who have been granted the benefit until the end of December 2024, freezing the amount of the 100 years of age honorary benefit on 1 January 2025 at the level of the base amount (as of 1 March 2024 - PLN 6,246.13 gross) and introducing of the principle that the benefit will be indexed every year on 1 March according to rules corresponding to those applicable to the indexation of retirement benefits and pensions.
Important change for thousands of Polish seniors
Today, approximately 6 thousand people receive the honorary benefit. However, this figure will increase year on year, as life expectancy is steadily increasing.
The new rules will be effective from 1 January 2025.