In Poland, the annual adjustment of pensions and benefits, which is crucial for maintaining their purchasing power amid inflation, is set to utilize a solely percentage-based formula for increases this year. This approach diverges from previous methods that sometimes incorporated a mixed system of both fixed and percentage increases. Expert Łukasz Kozłowski from the Federation of Polish Entrepreneurs argues that a clear percentage mechanism is the most rational and consistent with the defined contribution system, reflecting a focused approach to social security adjustments.

The key component of this adjustment is the valuation index, which determines how much pensions and benefits will increase. This index is based on the average annual price index of goods and services relevant to pensioners and disabled beneficiaries from the previous year, which is reported at 4.2% according to the Central Statistical Office (GUS). Furthermore, to ensure that the increases are meaningful and contribute to real income growth, there is an additional requirement of at least a 20% increase tied to the real growth in average salaries from the previous calendar year.

With this adjustment coming into effect on March 1, higher pensions and benefits are expected to support pensioners in coping with the rising cost of living. As inflation affects the everyday lives of many, especially the elderly population, these adjustments are essential in providing financial security and improving their quality of life amidst challenging economic conditions.