Pensions could climb by 2.7 percent
With the inflation figures available since Wednesday at 3.6 percent, the basis for the upcoming pension adjustment is now also in place. The anticipated statutory adjustment value is derived from the average inflation values (mean) of the months from August 2024 to July 2025. Accordingly, the adjustment factor is expected to be 2.66 percent. Of course, politics can also decide on higher or lower allocations.
What is the government doing regarding pensions?
The government has not yet officially commented on how it intends to handle the pension increase this year. "We will, just like every year in this process, wait for the figures and then enter into negotiations with the pensioners' representatives," said Social Minister Korinna Schumann (SPÖ) upon request. People with low pensions, often women, should not be left out in the rain. According to Statistics Austria, a final inflation value for July will not be available for almost a month.
The presidents of the Senior Citizens' Council, Birgit Gerstorfer from the SPÖ-affiliated Pensioners' Association and ÖVP senior representative Ingrid Korosec, are expecting a pension increase of 2.7 percent. "Out of respect for the older generation," the statutory adjustment value should be applied. In discussions with Social Minister Schumann, they also want to talk about the compensatory allowance rates for small pensions and combating old-age poverty.
The economic and budgetary situation demands "prudent and responsible action in pension adjustments," it was said from the Federal Chancellery at the beginning of August. The Ministry of Social Affairs also emphasized at that time that they are "working on a social, fair, and comprehensible solution for the benefit of the older generation and society as a whole."
Retreat likely to include pensions as a topic
Foreign Minister Beate Meinl-Reisinger (NEOS) referred in the ORF "Summer Talk" last Monday to the upcoming government retreat on September 2 and 3 at the Chancellery in Vienna. In addition to other topics, the ÖVP-SPÖ-NEOS coalition will also address the issue of pensions there.
This year, pensions were increased by the statutory adjustment factor of 4.6 percent - capped up to the ASVG maximum contribution basis of 6,060 euros per month. In principle, family and social benefits should also increase by the same value as the pensions, but the valorization for income-independent benefits - such as family allowance and childcare allowance - was suspended for two years.
The adjustment factor had already been basically determined at the beginning of August after the quick estimate by Statistics Austria. Now there is a preliminary value for July, which could still change, they announced.
(APA/Red)
This article has been automatically translated, read the original article here.