Terrible news for older people. The government quietly approved a draft regulation setting the level of indexation of pensions and disability benefits for next year. It opted for the lowest possible variant.
It is now settled. The current ruling party has set the pension and disability benefit indexation rate at 4.9% starting from March 2026. What does this mean in real terms for pensioners’ wallets? Unlike in previous years, they will not feel any improvement – especially in the face of inflation and still rising prices.
Anyone who hoped that the minimum pension would exceed 2,000 PLN has been quickly stripped of their illusions by the government. According to the assumptions, it will rise from the current 1,878.91 PLN to about 1,970.98 PLN gross, that is by 92 PLN. This is the lowest increase in years and even lower than this year’s 5.5%.
They chose the lowest threshold
Where did the mentioned 4.9% come from? Indexation is determined by law. It is nothing more than inflation from the previous year plus at least 20% of real wage growth. The law allows for more than “at least 20%.”
Every year, the government can increase this share through regulation. This year, however, it chose the lowest threshold, which resulted in this figure. Experts have no doubt – this is the most painful decision for seniors.
For minimum benefits, we are talking about an increase of 92 PLN. That is according to estimates. But it must be remembered that this is a gross amount. Net, after tax and health insurance contributions, it will be less. In practice, seniors will see only part of this amount in their wallets.
A brutal move
The low indexation will hit hardest those with the lowest benefits, because percentage-based calculation by definition favors higher pensions.
The government could have done otherwise. The law allows for a larger share of wage growth. In previous years, solutions much more favorable to seniors were possible. Indexation even reached double digits. This year, no such decision was made.
They could, for example, have added a protective mechanism for the lowest benefits. But the government chose otherwise. From the perspective of people who are already cutting their expenses to the bone, this is a brutal move.