The government has made a secret decision. Retirement in 2026 with the lowest wage in years.

dailyblitz.de 17 hours ago

Without press conference and authoritative communications – the government quietly approved a regulation key to the portfolios of millions of seniors. The decision concerns the ratio of the weighting of pensions for 2026, which will prove to be the lowest in respective years. Although the benefits will increase, the scale of increases can be a large disappointment for many. Moreover, fresh calculations will besides affect the rate of thirteenth and fourteenth pensions and any people will lose the right to a full additional benefit.

The paper has already been published in the diary of Laws, which means that the mechanics is legally binding. Experts pay attention not only to the tallness of the indicator, but besides to the unusual, discreet way of dealing with specified an crucial bill for society. The government has decided to make the minimum support allowed by the legislation, which will straight translate into the circumstantial amounts to be paid to pensioners and pensioners' accounts in little than 2 years. We're looking into precisely what that decision means and what money seniors can expect.

The decision was made quietly. The government avoids a hard subject?

At the end of July, the Council of Ministers adopted a draft regulation on the ratio of the valorisation of pensions in 2026. Although this is an yearly procedure, this time it was held in an highly discreet way. A conventional press conference was missing after the government meeting, and government spokesperson Adam Szpiek did not inform about this decision in his media speeches.

The paper simply appeared in the diary of Laws, which formally ended the legislative process. specified a deficiency of transparency in communication raises questions, especially as the issue concerns financial safety of 1 of the largest social groups in Poland. Experts propose that the government may have deliberately avoided publicity, realizing that The proposed increase has been the lowest in years and may origin negative reactions to the public.

This decision is besides a consequence of the failure of negotiations within the Social dialog Council. Trade unions and employers' organisations have not reached an agreement on the rate, which has transferred the eventual work to the shoulders of the government. This in turn took the chance to approve the minimum option.

Valorization at minimum. Why didn't the government give more?

Under the current law, the ratio of the weighting of pensions is calculated on the basis of 2 key factors: average yearly inflation rate in households of pensioners and pensioners, and at least 20% of the real increase in average wage in the national economy. The law gives the government the chance to rise the second component in order to supply seniors with a greater share of the country's economical growth.

This year, however, the government decided on an absolute minimum. The rate of wage growth has been set at the statutory level of 20%, which in practice means that the increase is only intended to compensate inflation and to a tiny degree reflect the increase in public wealth. This approach is in contrast to erstwhile years erstwhile this indicator was higher, resulting in more noticeable increases.

The choice of the minimum option is explained by the request to stabilise public finances and be cautious in the face of uncertain economical situations. However, for seniors, this means 1 thing: their benefits will increase to the least degree permitted by the regulations.

Forecasts for 2026. How much will the pension increase?

According to the Regulation adopted, the projected rate of valorisation of pensions in March 2026 will be 4.9 percent. To realize how tiny this value is, it is worth comparing it with erstwhile years:

  • Valorisation in 2025 – 5.5% (prognosis)
  • Valorisation in 2024 – 12.12 percent.
  • Valorisation in 2023 – 14.8%

In practice, this means that minimum pension, which presently amounts to PLN 1878.91 gross, will increase in 2026 to the amount PLN 1970.98 gross. After deduction of wellness contributions and income taxation advances, the elder receives approximately PLN 1793,59 “on hand”. This means a net increase of little than PLN 87 per month.

A individual receiving an average pension of about PLN 3,500 gross present can anticipate an increase of about PLN 171.50 gross. Although any additional euro is important, in the context of the ever-increasing cost of living, specified low value may not be adequate to keep the real purchasing power of benefits.

What about thirteen and fourteen? Not everyone gets the full amount

Low valorisation has a direct impact on the amount of additional yearly benefits. Thirteenth Pension in 2026 the minimum pension after valorisation, i.e. PLN 1970.98 gross. The wellness contribution (9%) will be deducted from this amount and people whose full benefits exceed PLN 2500 per period will besides pay income tax.

The situation with 14th pension. Its maximum amount will be the same as the thirteenth, but the full amount shall be due only to seniors whose basic pension does not exceed PLN 2900 gross. It is crucial that this income threshold is not valued.

As a result, after the March increase in benefits by 4.9%, the larger group of seniors will exceed the threshold of PLN 2900 gross. This means that they will receive a fourteen little than or not at all according to the golden rule. It is simply a silent mechanics that limits the number of persons entitled to full support each year.

New proposals on the table. Experts and politicians divided

Low percent valorisation has revived the discussion on the change in the strategy of expanding benefits. president Elekt Karol Nawrocki announced that he would search to introduce quota-percentage mechanism. It would warrant a minimum increase of PLN 150 gross, which would be better for those with the lowest pensions.

This thought was met with criticism from the current government. Deputy Minister of the Family, Sebastian Gajewski, in an interview with the Money.pl portal, stated that valorization is an economical mechanism, not an component of political game. – Valorisation is intended to keep the purchasing power of benefits and guarantee that pensioners can participate in the fruit of economical growth. Quota valorisation is the least consistent with these functions," stressed the typical of the Ministry.

Meanwhile, seniors stay with circumstantial numbers. The government decision, made without publicity, introduces the lowest increase in years, which for many may not be adequate to cover rising costs of living. Time will show whether political and social force will lead to a change of rules in the following years.

Read more:
The government has made a secret decision. Retirement in 2026 with the lowest wage in years.

Read Entire Article