Therefore, pensions and benefits that do not exceed 683 euros will be indexed in full.
The actual increase in pension or compensation will depend on both the amount of pension and compensation and the applicable index.
The exception is the politically repressed, people with disabilities of the first group and participants in the elimination of the consequences of the Chernobyl nuclear power plant accident, for whom the entire amount of the pension will be indexed.
Old-age, retirement, disability and survivors’ pensions and compensations granted or recalculated until September 30, 2024 will be indexed.
In accordance with the Law “On State Pensions”, the indexation of pensions will also take place on October 1 this year, applying a coefficient that depends on the length of employment insurance, LETA agency was informed by Egils Zariņš, public relations specialist of the LM Communications Department.
In the indexation of old-age pensions, in addition to the actual consumer price index, part of the percentage of the real increase in the amount of insurance contributions will also be taken into account.
Accordingly, for insurance years up to 29 years, they will be 50%. On the other hand, if the insurance period is between 30 and 39 years and if the pension was granted for work in harmful and severe or particularly harmful and particularly severe working conditions, the increase will be 60%. However, in the case of 40 to 44 years of service, the increase can be measured by 70%, and from 45 years and above – 80%.
The greater the length of insurance, the greater the index will be applied and the greater the increase in the old age pension a person can expect. For example, if the amount of the old-age pension is 500 euros, then for a senior with up to 29 years of insurance, the amount of the pension will be 532.70 euros from October this year, which is 32.70 euros more than before. The biggest increase can be measured in the amount of 50.20 euros, if the insurance period is 45 years and more – in this case, the pension will increase to 550.20 euros.
On the other hand, the actual consumer price index and 50% of the real increase in the amount of insurance contributions will be applied to the indexation of the other state pensions and insurance benefits and the determination of the granted supplement to the old age and disability pension for one year of insurance service accumulated until December 31, 1995, thus an index of 1.0654 will be applied.
When indexing the premium, the corresponding index will apply premiums of approximately 1.52 euros for each year of insurance service up to December 31, 1995, and approximately 2.28 euros will be paid for each year of insurance service up to December 31, 1995, if the old-age pension was granted before 1996 .by December 31, or the disability pension was granted and the age required for the old-age pension was reached by December 31, 1996.
This means that the existing amount of the premium, which is currently 1.52 euros and 2.28 euros per year of insurance, will be revised by applying the index of 1.0654. Therefore, people who received 1.52 euros for each year of service accumulated until the end of 1995 will receive 1.62 euros, and those who received 2.28 euros will receive 2.43 euros.
For example, a pensioner who has been granted an old-age pension of 510 euros for a total of 45 years of insurance and a supplement of 38 euros (for 25 years of work until the end of 1995) will receive an old-age pension of 561.20 euros and a supplement of pensions 40.50 euros.
The purpose of indexation of pensions is to ensure the protection of granted pensions and benefits against a fall in purchasing power and to ensure that they do not lose their value, according to LM.
LM reminds that personal income tax can be deducted from the total amount of pension and allowance (non-taxable minimum in 2024 – 500 euros), which reduces the amount to be paid.
Pensioners do not have to do anything themselves – pension indexation will be provided by the State Social Insurance Agency, and it happens automatically.
2024-08-13 05:45:39