Government Sets Minimal Pension Indexation for 2026

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Pension Valorization in Poland: 2026 Increase Falls Short of Recent Gains

Warsaw, Poland – A government proposal for pension valorization in 2026 is projected to be between 6-7%, substantially lower than the substantial increases seen in recent years, sparking disappointment among Polish pensioners. The decision,formalized in a Regulation of the Council of Ministers published July 31,2025,and appearing in the journal of Laws (item 104),deviates from the previous model of incorporating both a percentage increase and a fixed quota.

This adjustment comes amidst ongoing economic uncertainty and a continuing rise in the cost of living,impacting the financial stability of millions of Polish families. the proposed valorization method relies solely on a percentage increase tied to real wage growth,specifically 20%,and excludes the “RDS” agreement (Rodzina,Dom,Senior – Family,Home,Senior) which previously contributed a fixed amount to pension increases.

Context: Recent Pension Increases and Inflationary Pressures

Poland has experienced a period of historically high pension valorization in response to surging inflation. These increases were designed to protect pensioners’ purchasing power. however, as inflation begins to moderate, the government is adjusting its approach. The shift reflects a broader economic strategy focused on fiscal obligation and aligning pension increases with lasting wage growth.

Impact on Pensioners and Families

Many pensioners are expressing concern that the proposed 6-7% increase will not adequately offset the rising costs of essential goods and services. the lack of a fixed quota, previously set at PLN 250 in 2022 and increased to PLN 300 in 2025, is a particular point of contention. This is especially relevant for pensioners receiving lower benefits, for whom the fixed quota represented a significant portion of their overall increase.

The government maintains that the proposed valorization method ensures a stable and predictable system, linked to the long-term growth of the Polish economy. However, critics argue that it fails to adequately address the immediate financial challenges faced by pensioners, especially those on fixed incomes.

Table: How did pensions grow? Valorisation indicators in 2022-2026 (together with the forecast to 2026)

The following table presents official indicators of the valorization of pensions and disability pensions in force in 2022-2025 and the forecasted indicator value for 2026, resulting from a government proposal based on a statutory minimum. this data,presented in a tabular form,allows for a quick comparison of the dynamics of benefits growth in recent years and an assessment of how the current proposal falls on the background of record valorization from previous periods.