The Council of Ministers adopted a draft law which will increase the benefits paid to pensioners from next year. Minimum pensions 1,100 PLN, and all benefits will be increased by at least 70 PLN.
This is about the bill on amending the Social Insurance Fund Pensions and Pensions Act and some other laws, adopted by the government. The new regulations were designed primarily for the poorest seniors. The project is hosted by the Ministry of Family, Labour and Social Policy.
Objectives of the bill
The novel assumes that in March 2019 the lowest pension, the total incapacity pension, the family pension and the social pension will increase to the amount 1,100 PLN. Now it's 1,029.8 PLN.
"With every further valorization, we try to help seniors by raising benefits. Valorisation this year was the highest in recent years five years (benefits increased by 2.98% – ed.)" says Minister of Family, Labour and Social Policy Elżbieta Rafalska. "Knowing that there is a large group of people who receive low benefits we also propose raising minimum pensions. I hope that the actions taken will improve the quality of life of senior citizens" - added Minister Rafalska.
Also the lowest partial incapacity pension will increase from 772.35 PLN to 825 PLN. The modification of the rules of valorisation will also apply to farmers' pensions, uniform services and bridge and teacher compensation benefits.
But that's not all. The government proposes that pensions increase (according to forecasts) by 3.26%, However, not less than 70 PLN. This means that the lowest benefits will be increased by 6.8%, two times higher than if the statutory forecasted value indicator were used. The increase will be covered by approx. 6,200,000 pensioners. Under new rules, people whose benefits do not exceed 2,147.3 PLN gross.
Valorisation of pensions
This year’s value of benefits was highest than 5 years – pensions increased by 2.98% In turn in 2017 Government of Law and Justice raised minimum pension from 882.56 PLN to 1,000 PLN, which meant above 13% growth. In 2016 (next to statutory valorization) seniors were paid one-off allowances (from 50 to 400 PLN net).
Total lowest benefits for pensioners in years 2016-2019 will increase during the rule of the Law and Justice one fourth (in years 2016-2019). In 2015 for the calculation of pensions 3,550,000,000 PLN. This year it will be 5,960,000,000 PLN. Valorisation costs since March 2019 Less than 8,400,000,000 PLN.
Source: MRPiPS