Several million pensioners will get a raise in March. Benefits are expected to rise by 5.7 percent, according to calculations by the Pension Institute. Experts added that the minimum pension after valorization will be just over 1320 zloty.
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The actual index of valorization of pensions and annuities will be known after the President of the Central Statistical Office will provide real values of inflation and salary increases in 2021.
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The Central Statistical Office reported that the average salary in the national economy in 2021 amounted to 5662.53 PLN, an increase of 9.6 percent year-on-year. The CSO reported back in January, that the average annual total consumer price index in 2021 was 5.1 percent.
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Pension indexation – IE calculations
“Real wage growth in 2021 amounted to 3.0 percent, so the valorization of benefits from March 1 will be 5.7 percent, that is, the minimum pension 1322.18 zł” – tweeted the Pension Institute.
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According to IE expert, pensioners must prepare for a difficult year. “As inflation approaches 10 percent, their benefit adjustments will be nearly halved. The inflation of January and February will eat up what they get in March. The government should consider a higher percentage indexation and a second indexation in September,” – Sobolewski stated.
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Read also: A second valorization within a year is most advisable >>>.
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At the beginning of February, the Minister of Family and Social Policy Marlena Maląg said that the valorization of pensions “is moving towards 6 percent”.
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The budget law for 2022 adopted by the Sejm adopted a pension index of 104.89 percent. The minimum pension would increase by PLN 61.17 to PLN 1312.05.
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Pension valorization – rules
According to the Act on Pensions from the Social Insurance Fund, these benefits are subject to annual valorization as of March 1. The index of valorization is the average annual price index of consumer goods and services in the previous calendar year, increased by at least 20% of the real increase in average salary in the previous calendar year.
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The President of the Central Statistical Office shall by the end of January announce the average annual price index of consumer goods and services in general and for households of pensioners in the previous calendar year. In turn, by the 7th working day of February, the real increase in the average salary in the previous calendar year is announced.
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Inflation in Poland – December 2021PAP
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photo-source">Main photo source: Shutterstock
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