After the CBS published the July inflation, the value of the pension increase has now been determined. For the pensioners’ association affiliated with the SPÖ, this is too low.
Pensions will increase by 4.6 percent next year, it was announced on Tuesday. The government recently agreed to use the statutory adjustment factor for the annual pension adjustment. This applies to a pension of up to 6,060 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.
“Safeguard clause” against cuts
For the pensioners’ association affiliated with the SPÖ, among others, the 4.6 percent is not enough. This cannot “put a stop to poverty in old age”, said President Peter Kostelka. The compensation payment should “finally be raised above the poverty line”. In addition, there would be a need for, among other things, a “permanent protection clause against pension reductions” as a result of inflation and for an “abolition of pension security”. contribution”.
The basis for calculating the reference pension increase for 2025 by the Ministry of Social Affairs is the average increase in the consumer price index. For this purpose, the arithmetic average of the twelve annual inflation figures of the CBS from August 2023 to July 2024 is used. This factor is also used to adjust family and social benefits and to increase the salaries of politicians.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
