Adjustment to inflation

Pensions will rise by this percentage in 2025

Pensioner with euro bills

(Bild: stock.adobe.com)

Now that Statistics Austria has published the July inflation figures, the value for the increase in pensions has also been determined. This is too low for the SPÖ-affiliated Pensioners' Association.

Pensions will rise by 4.6 percent next year, as was announced on Tuesday. The government had recently agreed to adopt the statutory adjustment factor for the annual pension adjustment. This applies up to a maximum pension of 6060 euros per month. Anyone with a higher income will only receive the adjustment factor up to this amount.

Here you can see the pension increases since 2018.

"Protection clause" against cuts
The 4.6 percent is too little for the SPÖ-affiliated Pensioners' Association, among others. This cannot "put a stop to poverty in old age", said President Peter Kostelka. The equalization supplement should "finally be raised above the poverty line." There would also need to be a "permanent protection clause against pension cuts" due to inflation and an "abolition of the pension protection contribution".

The basis for calculating the guideline value for the pension increase for 2025 by the Ministry of Social Affairs is the average increase in the consumer price index. For this purpose, the arithmetic mean of the twelve annual inflation rates from August 2023 to July 2024 is used by Statistics Austria. This factor is also used to adjust family and social benefits and to increase the salaries of politicians.