Concerning indexation of pensions and indemnities on October 1, 2020

On October 1, 2020, the State Social Insurance Agency (SSIA) will index the amount of pensions and indemnities or parts thereof that do not exceed 454 euros per month. Old-age, invalidity, retirement and survivors’ pensions and indemnities granted or recalculated until 30 September 2020 will be indexed.

The following indexes shall be applied to old-age pensions:

  • 1,0380, if the total insurance period is up to 29 years;

  • 1,0446, if the total insurance period is from 30 to 39 years or if the old-age pension has been granted for work in harmful, severe (List 2) or particularly harmful, particularly severe (List 1) working conditions (even if the insurance period is less than 30 years);

  • 1,0512, if the total insurance period is from 40 to 44 years;

  • 1,0578, if the total insurance period is 45 and more years.

The entire granted pension, which does not exceed 454 euros, will be indexed. In turn, for those pensions and benefits that exceed 454 euros, only a part of the allocated amount – 454 euros – will be indexed.

For politically repressed persons, Group I disabled persons and participants in the aftermath of the Chernobyl accident, the full amount of the pension shall be indexed.

An index of 1,0380 will be applied to invalidity, retirement and survivors’ pensions, as well as to insurance indemnities (up to a maximum of EUR 454), regardless of length of insurance.

The increase in the pension will depend on the amount of the granted pension.

For example: A person has been granted an old-age pension for 30 years of insurance period, the amount of which on September 30, 2020 is 300 euros. An index of 1,0446 is applied to this amount, thus the amount of the pension after indexation will be 313,38 euros and the pension increase will be 13,38 euros.

The supplement to the state pension is not included in the amount of the indexed pension.

The granted supplement for each year of insurance accumulated until December 31, 1995 shall increase from October 1, 2020 as follows:

  • from 1,61 to 1,67 euros – if the old-age pension has been granted until December 31, 1996 or the invalidity pension has been granted and the age required for granting the old-age pension has been reached by December 31, 1996;

  • from 1,07 to 1,11 euros – if the old-age or invalidity pension has been granted as of January 1, 1997.

For example: A person has been granted an old-age pension for 25 years of insurance, the amount of which on September 30, 2020 is 200 euros. An index of 1,0380 is applied to this amount, thus the amount of the pension after indexation will be 207,60 euros and the pension increase will be 7,60 euros.

The supplement granted, the amount of which for 24 years of insurance until December 31, 1995 is EUR 38,64, will be EUR 40,08 and the increase in the supplement will be EUR 1,44. The total amount of the pension and supplement increase will be 9,04 euros.

SSIA pension indexation will be provided automatically without a person’s application. The pension and supplement will be paid in the new amount starting from October 2020.

It should be noted that personal income tax may be deducted from the indexed pension, which reduces the amount to be paid.

State pensions and benefits are indexed in accordance with Section 26 of the „Law on State Pensions”.

Published date: [20.08.2020]