Adjustment by law
Pensioners will receive 4.5 to 4.7 percent more
On Wednesday, the government agreed on the pension increase for 2025 ahead of schedule. Austria's pensioners can expect an increase of 4.5 to 4.7 percent. This corresponds to the statutory adjustment factor, which will not be known for a few weeks. There is once again a cap on maximum pensions.
The government has gone ahead this time. The statutory adjustment factor - calculated on the basis of average inflation from August 2023 to July 2024 - will not be known until July inflation is also known.
Final value in September
According to government figures, experts currently estimate that cumulative annual inflation will be between 4.5 and 4.7 percent. Statistics Austria will publish its quick estimate on Wednesday and the final figure will be known in September. The National Council's decision on the pension increase is also planned for September.
On average 78 euros more
The government's decision is intended to fully compensate for the inflation of the past twelve months for the approximately 2.3 million pensioners in the statutory pension insurance scheme. The average pension of 1694 euros gross per month will therefore rise by around 78 euros. Top pensions above the ASVG maximum contribution basis of 6060 euros per month will also be increased by the statutory adjustment factor up to this value.
The equalization supplement for around 200,000 minimum pensioners will also be increased to the same extent as pensions in the coming year. Their pension will rise from the current minimum of EUR 1217.96 to around EUR 1275.
Treat for new pensioners extended
For new pensioners, the protection clause for the pension account will be extended by one year. This means that all people who retire regularly in 2025 will be compensated for inflation in their pension account. The only exceptions are people who voluntarily take early retirement, i.e. who take a corridor pension without having previously been unemployed. According to the government, this creates an incentive not to take early retirement.
In addition, the statutory aliquotation regulation will also be suspended in 2026 - one year longer than previously planned. This means that everyone who retires in 2025 will receive the full pension increase in the following year - regardless of the month in which they retire.
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