The Polish pension system is undergoing significant changes in 2025, with the recent indexation of pensions and the introduction of additional benefits like the thirteenth and fourteenth pensions. The Social Insurance Institution (ZUS) has implemented an indexation rate of 5.5 percent, which has raised the minimum pension from 1780.96 PLN to 1878.91 PLN gross, translating to a net pension of 1709.81 PLN after mandatory deductions. This increase reflects a monthly rise of 89.74 PLN compared to the previous year, amounting to an additional 1076.88 PLN net annually.
In April 2025, ZUS distributed the thirteenth pension, a one-time financial support for pensioners, which is equal to the minimum pension after the March indexation. This year, the thirteenth pension is set at 1878.91 PLN gross, and payments are scheduled for various dates throughout the month, including April 1, 4, 10, 15, 18, and 25. This additional payment has provided many seniors with a welcome boost to their finances, allowing for greater spending or savings opportunities.
Looking ahead, the fourteenth pension will also be disbursed in 2025, with the full amount available to those whose gross pension does not exceed 2900 PLN. For those above this threshold, the benefit is reduced according to the 'zloty for zloty' principle, meaning that for every zloty over the limit, the fourteenth pension is reduced by an equivalent amount. If the resulting benefit is less than 50 PLN, it will not be paid out. This has raised concerns about equity in the pension system, as some individuals may receive reduced benefits despite having a relatively stable financial situation due to other income sources.
The Ministry of Family, Labor and Social Policy has confirmed that no changes are currently planned regarding the amount of the fourteenth pension or the income threshold for full eligibility. However, experts have pointed out that the static income cap of 2900 PLN, unchanged since 2021, could lead to more pensioners receiving reduced amounts or none at all as the minimum pension continues to rise.
For instance, a pensioner currently receiving a gross pension of 3500 PLN would see their fourteenth pension reduced by 600 PLN, resulting in a payment of 1180.96 PLN gross. This situation raises questions about the fairness of the system, as it does not consider the overall financial situation of seniors.
In addition to the thirteenth and fourteenth pensions, 2025 will also see the introduction of a widow's pension, allowing seniors to combine a family pension from a deceased spouse with their own retirement benefit. This new option, available from January 1, 2025, will provide two choices: receiving 100% of the family pension and 15% of their own benefit or vice versa. Applications for this benefit can be submitted starting January 2025, with payments commencing in July 2025.
The indexation rate of 5.5 percent for 2025 is lower than the previously forecasted 5.82 percent, reflecting changes in economic conditions, including an average annual inflation rate of 3.6 percent and a real wage growth of 9.5 percent. This adjustment in the indexation rate has raised concerns among beneficiaries, as lower increases in benefits may not keep pace with rising living costs.
While the indexation of pensions is a crucial tool in social policy aimed at adjusting benefits to changing economic conditions, the current rate may not be sufficient for many seniors. As the cost of living continues to rise, the adequacy of pension benefits is increasingly coming under scrutiny.
Moreover, the government has indicated that it may explore options for adjusting the fourteenth pension in the future, but for now, the focus remains on the established limits. The lack of flexibility in the income threshold for the fourteenth pension has led to calls for reform from various stakeholders, including pensioners and social policy experts.
As 2025 unfolds, pensioners are encouraged to stay informed about their benefits and any potential changes to the pension system. The ZUS has emphasized the importance of understanding the implications of these adjustments, particularly regarding tax implications for additional benefits. Pensioners can submit an EPD-21 application to ZUS to avoid tax deductions from the thirteenth and fourteenth pensions, although they must be mindful that tax will still apply if their income exceeds 30,000 PLN.
In summary, the changes in the Polish pension system in 2025 reflect a complex interplay of economic factors, government policy, and the financial realities faced by seniors. As pensioners navigate these changes, it is crucial for them to remain proactive in understanding their entitlements and seeking assistance when needed.
