On August 27, 2019, the government adopted the draft budget for 2020. The project includes a planned indexation of old-age and disability pensions next year. How much will the benefit of ZUS increase from March 2020, if continued? Will there be an increase in quotas for people receiving lower benefits? How much will the minimum pension increase? We write about this below. [Emerytury i renty 2020 – jaka podwyżka?]
The government adopted it at its August 27 session draft budget for 2020, It predicted that the state budget expenditures would be offset by revenues and amount to PLN 429.5 billion. This means there will be no deficit.
The government also announced the indexation of ZUS disability and retirement pensions, which would be effective in March 2020. This should be 103.24 percent. This means a 3.24% increase in pensions. (Gross).
▶ UPDATE: Law and justice suggested it the minimum pension in 2020 has been increased from PLN 1,100 to gross 1,200.
SEE THE CALCULATION OF INCREASING MODEL PENSIONS IN THE GALLERY
- inflation in retirement households – an increase in the prices of goods (statistically the highest) bought by the elderly
- real pay increase in the year preceding the valorisation.
Pensions 2020 – what is the increase?
In March 2019, pensions increased by 2.86 percent. (although it was originally assumed that the increase would be larger and would be over 3.2 percent). It all points By 2020, retirees will be able to count on a significantly higher indexation rate. For now, governmental assumptions indicate that the valorisation is expected to be next year 103.24 how much. (this indexation index was provided by the government in the draft budget for 2020 adopted on August 27, 2019.) Many, however, assume that due to increased inflation, this ratio will ultimately – in the Budget Act – have to be higher.
▶ Valorisation 2020. How much will pensions increase next year? ◀
When will we know the final valuation index?
As MPRiPS informs us, the 103.24 percent ratio recorded in the draft budget is the result of forecast macroeconomic data for 2019 in terms of inflation and wage increases. – The final size of the valorisation index will be known in February 2020., when the Central Bureau of Statistics will submit the relevant macroeconomic indicators for 2019 – it says in a reply sent to us by the Ministry of Family, Labor and Social Policy.
The final magnitude of the valorisation index will be known in February 2020, when CSOs will provide relevant macroeconomic indicators for 2019
Amount and percentage of valorisation?
In 2019, the government decided introduce quantification of pensioners receiving lower benefits. Therefore, the pension increased by a minimum of PLN 70 gross. If the higher rate resulted from valorisation – only then did the percentage apply. Will people receiving lower benefits also be eligible for quota adjustments in 2020?
– At this point, it is too early to make specific decisions regarding the change in the valorisation rule in the next year – the Ministry informed us in early September. – In addition, meetings at the Social Dialogue Council are scheduled this year as part of a review of the pension system, during which Important issues in the social security system will be discussed as well as proposals for possible changesespecially with retirees. In accordance with the proposed timetable, the topics of the rules for determining the amount of benefits will be discussed under which The indexation of pensions as well as the mechanisms for correcting / adjusting benefits will be discussed.
UPDATE: PiS announced in September that it would strive to introduce a quota and a percentage valuation. Pensions in 2020 would increase by at least PLN 70 gross. People who receive lower benefits would benefit from this solution. The percentage indexation would apply to pensioners whose increase exceeds PLN 70.
2019 Valorisation – How much retirees are increasing
An exact calculation of the "increase" for various 2019 benefits and pension examples can be found in the gallery below.
Retirement +, or "thirteen" for retirees
In May 2019, about 9.72 million people receiving pensions received so-called retirement +, This is a one-time cash benefit in the amount of the minimum pension, which is currently 1.1 thousand. PLN gross. With the annual adjustment of pensions, the new benefit is a real financial support for all pensions, especially those receiving the lowest benefits.
Budget for 2020. What is the government planning?
The draft budget for 2020 assumes that next year the state budget expenditures will be offset by revenue and amount to PLN 429.5 billion. This means that the 2020 budget will be the first deficit-free budget since 1990.
Project predicts GDP growth (3.7% in real terms) and an average annual increase in the prices of consumer goods and services (inflation) of 2.5 percent
Pension for mothers / fathers with at least 4 children
In the 2020 budget, the government will guarantee the payment of additional parental benefits to persons who raised at least 4 children and for long-term care of their offspring, they have not earned a pension that is at least equal to the minimum retirement age.