The opposition, which is likely to form a new government, intends to change the rules for pension indexation from 2024.
“The opposition, which has just won the elections, plans to change the indexation rules from 2024,” said the portal dobrecza.biz.pl, describing the plan. All this to convince older voters, who until now mainly opted for PiS. In Sunday’s Sejm and Senate elections, 54% of voters voted for Jarosław Kaczyński’s party. voters over 60 years old (Ipsos exit poll survey for TVN, Polsat and TVP.).
Double valorization
This year, in March, pensions were increased by 14.8% as a result of indexation. What are opposition politicians planning? “Several variants are being considered. It is certain that the traditional indexation would still take place in March (nothing would change here). What is new is that the second indexation will take place – in September or October,” we read.
As explained, “the second indexation would be carried out if inflation exceeds 5 percent from January to the end of June of a given year. Then retirees would get a second increase, either based on the inflation rate or just at the level above more than 5 percent. 5 percent.” There is also a second variant: with inflation above 5%, the second indexation would be a fixed amount, meaning that pensioners would receive an increase equal to everything on the amount set by the government.
You will find details of the changes that will come into effect from next year on the website. “Pensioners would receive a traditional indexation in March 2024, probably by 12.3 percent. This is the inflation that the current government expects this year, and it is this year’s inflation that determines the March indexation rate. The second indexation would take place in September or October 2024. The current government predicts that prices will rise by 6.6% in 2024. This would mean an increase of 6.6% or only 1.6% (a surplus of more than 5%) – we read.
Source: Do Rzeczy
Roy Brown is a renowned economist and author at The Nation View. He has a deep understanding of the global economy and its intricacies. He writes about a wide range of economic topics, including monetary policy, fiscal policy, international trade, and labor markets.
