Pensions and Benefits Increase. Increase Higher Than Government Assumed
The annual valuation of pensions and benefits in Poland will result in an increase of 5.3%, exceeding government expectations due to adjustments based on average salary growth and inflation.
In Poland, the annual adjustment of pensions and benefits, known as waloryzacja, is set to increase by 5.3% this year, which surpasses the government's initial projections. This adjustment aims to preserve the real value of these benefits in response to rising prices of goods and services. The valuation calculation relies on a percentage formula that is fundamentally linked to inflation and real wage growth from the previous year, ensuring that retirees do not lose purchasing power.
The key component of this adjustment process is the waloryzacja index, which reflects the average price index of goods and services for households of pensioners and disability pensioners. For the past year, this index was determined by statistics from the Central Statistical Office of Poland, indicating an inflation rate of 4.2%. Additionally, the index includes an increase of at least 20% of the real growth of average wages, which has a pronounced impact on the final adjustment figure.
The latest figures released by the Central Statistical Office showed that the real growth of average wages for 2025, when compared to 2024, was 5.5%. This data conclusively set the waloryzacja index for pensions and benefits at 105.3%, leading to the decision for this yearβs pension and benefit increase. As a result, retirees in Poland will see a noteworthy enhancement of their monthly income, which is crucial for maintaining their standard of living amidst the ongoing economic challenges.