Increasing the 14th pension will be very expensive. We learned the government’s calculations

Increasing the 14th pension will be very expensive.  We learned the government's calculations

14. the pension will be higher than originally expected. The Council of Ministers adopted a special regulation on this matter. The project shows that this will be a huge cost to the budget.

The United Right government is making another nod to some retirees. These are those who are entitled to the so-called 14th pension, which is actually an allowance for people with the lowest benefits.

14. the pension will be higher

The 14th pension this year, according to Jarosław Kaczyński’s earlier declaration, will amount to PLN 2,200 net, i.e. PLN 2,650 gross. This amount will be awarded to people whose regular benefit does not exceed PLN 2,900 gross. In the case of the remaining funds, the “PLN for PLN” mechanism will be used.

On August 22, the Council of Ministers adopted a special regulation on this matter.

14. pension up. Additional burden on the budget

However, the news that will please some retirees has major consequences for the state budget. As we read in the Regulatory Impact Assessment to the Regulation of the Council of Ministers, setting the 14th pension at a level higher than the minimum pension is an additional cost for the public finance sector of nearly PLN 7.2 billion.

Expenses to cover the difference between the 14th old-age pension and the minimum old-age pension were set at PLN 9.1 billion, while the state budget revenues – at PLN 952 million, and the revenues of the National Health Fund – at PLN 819 million.

Morawiecki: Additional funds from VAT sealing

During the press conference after the meeting of the Council of Ministers, during which the regulation increasing the number of fourteen was adopted, Prime Minister Mateusz Morawiecki explained where the additional funds in the budget came from. There were also comparisons with his predecessors from the PO-PSL government.

– Recently, together with the president, we shared the good news that the 14th pension will be a permanent benefit. Today I have two more good news for all our seniors. We decided to start the payouts in the first half of September, and the amount was about PLN 1,000 more than before. This is extremely important for seniors, said Mateusz Morawiecki.

As Morawiecki said, the PiS government found money for additional benefits thanks to the tightening of VAT. He also referred to the question he plans to ask Poles in the referendum, which is to be organized together with the next parliamentary elections. It concerns the increase in the retirement age.

– Retirement age, ZUS rates. This is what Donald Tusk raised, said Morawiecki and called on seniors to “beware of Tusk’s liberals.”

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