The indexation indicator is determined by taking the average annual consumer price index from the previous calendar year and adding at least 20 percent of the real increase in the average salary from the previous calendar year.

The actual indexation indicator for pensions became known on February 9,

when the President of the CSO announced the rate of real growth of the average salary in 2023, which amounted to 1.1 percent.

Meanwhile, in mid-January, we learned that the CSO's figures for the annual average total price index of consumer goods and services, as well as for pensioner households in 2023 (inflation), were as follows: 111.4 (price increase

by 11.4 per cent) and 111.9 (price increase by 11.9 per cent).

An average annual inflation rate of 111.9 percent for pensioner households in 2023 has therefore been utilized to determine the indexation indicator in 2024.

What does this mean in practice?

A percentage indexation based on the actual indexation indicator will be applied to all pension benefits, following the scheme proposed in the Act.

From 1 March 2024, the lowest pension (total disability pension, survivor's pension and social pension) will be PLN 1780.96, increasing by PLN 192.52.

For benefits of e.g. PLN 2,300 – this will be a PLN 278.76 indexation increase, for benefits of PLN 2,500 – PLN 303, for PLN 3,000 – PLN 363.60.

How much does it cost?

Total cost of indexation of pensions and other benefits

from the universal, agricultural and uniformed systems, is estimated to be around PLN 43 billion.