Polish minister proposes factoring 30% of wage growth into pensions — Interia
In Poland, Minister of Family, Labour and Social Policy Agnieszka Dziemianowicz-Bąk has proposed changing the mechanism for indexation of pensions and disability benefits in 2027. The proposal involves increasing the share of real wage growth taken into account when calculating benefit increases from 20% to 30%.
According to Interia, the current approach provides for taking inflation and 20% of real wage growth into account. According to forecasts, this would result in indexation of approximately 3.96% in March 2027. If the option proposed by the minister is applied, the figure could be around 4.29%.
Calculations for the minimum pension
According to the outlet's estimates, the minimum pension, which currently amounts to 1,978.49 zlotys gross, could rise to approximately 2,063.37 zlotys gross after indexation in March 2027. This is nearly 85 zlotys more. Under the option with an increase of 3.96%, the payment would amount to about 2,056.84 zlotys gross.
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Interia also provides estimated amounts of the monthly net increase for higher pensions: 78.03 zlotys for a payment of 2,000 zlotys, 110.14 zlotys for 3,000 zlotys, 148.09 zlotys for 4,000 zlotys, and 186.04 zlotys for 5,000 zlotys. These calculations are estimates.
The decision has not yet been made
The proposal has not yet become a decision of the Polish government and is at the discussion stage in the Council of Ministers. Another option proposed by The Left provides for an automatic increase in the share of wage growth in the indexation formula if inflation exceeds a set threshold, for example 5%. In that case, the share could rise to 30% or even 50%.
Poland's draft state budget for 2027 has currently been prepared based on indexation of approximately 3.96%. It allocates about 19 billion zlotys for increases in pensions and disability benefits. Applying a 30% share would not require changing the law, but it would require government approval and additional funds in the budget.
