Valorization of pensions to change. Nawrocki wants a new system
President Elekt Karol Nawrocki announces a new system of valorisation of pensions. The increase every year is to be at least PLN 150 gross.
Karol Nawrocki, President of Elek, during the election campaign promised seniors to change in the rules of indexation of pensions. He announced that he would send a bill to the Sejm on the first day of office. The goal is to introduce a system that will guarantee pensioners an annual increase of at least PLN 150 gross – regardless of economic conditions.
Inflation height
Currently, the amount of valorisation depends on the average annual inflation for retirement and pensioners and at least 20 percent. real increase in average salary. This means that benefits increases are closely related to the economic situation of the country and the price level. The new system is to change – the valorisation indicator is always to be higher than inflation, which is to protect the real value of benefits.
In practice, if the announced changes come into force, the lowest pension in 2026 may amount to PLN 2028.91 gross. For comparison, currently the minimum benefit is PLN 1878.91. The change would mean a constant increase of PLN 150 gross a year. Importantly, the fixed amount of valorisation will be more noticeable for those receiving the lowest benefits – the percentage increase in their case will be the highest. The proposal is to cover not only pensioners, but also pensioners, people receiving social pensions and survivors’ pensions.
The current valorisation system did not provide for a minimum amount of increase. It was based only on economic indicators. Therefore, a new solution would introduce a significant change in social policy.
Reform announcement
The planned reform will also have an impact on state finances. According to estimates, this year’s indexation of benefits cost about PLN 22.8 billion. The introduction of a permanent increase for all pensioners can increase expenses by another PLN 1.2 billion.
The bill is to be submitted on August 6, on the day of the swearing in to the president. Although the tempo of the announced changes is fast, the proposal must undergo a full legislative procedure – to accept the Sejm and Senate. Amendments or opposition during parliamentary work are also possible.
