As of January 1, 2022, the gross pensions of up to 1,000 euros will be increased by three percent. The statutory adjustment value (inflation) is 1.8 percent. For pensions of EUR 1,000-1,300 there is a looping rule and for all pensions from EUR 1,300 the inflation adjustment of 1.8 percent applies.
1.1 billion euros from budget
The relevant decision will be taken in the Council of Ministers next week and then forwarded to Parliament for further consideration. With this Pension increase A total of 1.1 billion euros will be made available from the budget. Pensioners with a pension of 1,000 euros get 30 euros more per month or 420 euros more per year. Pensions with 2,000 euros increase by 36 euros per month or 504 euros per year. The median pension across all types of pension is currently around 1,045 euros.
The pandemic has led to sharp price increases in various areas of life, said Federal Chancellor Sebastian Kurz (ÖVP) in a statement. For him, as Chancellor, it is therefore important that retirees with low and medium pensions receive the upcoming Pension increase must be taken into account more and the increase is well above the inflation value. “People who have worked their entire lives and built up our welfare state should also benefit from the government’s relief measures in old age,” said Kurz.
Kogler refers to women at risk of poverty
“We want to ensure a good life in old age, especially for people with low pensions,” affirmed Vice Chancellor Werner Kogler (Greens). Women in particular are often at risk of poverty in old age, and countermeasures need to be taken here. “For the second time in a row we are increasing the lowest and lowest pensions by up to three percent. As a result, more than a million people, almost half of all pensioners, will have more to live on in 2022.” At the same time, all retirees receive the entire loss of purchasing power of the previous year in full, as provided for in the law.
The Upper Austrian Governor Thomas Stelzer (ÖVP), who is currently campaigning for the election, showed himself to be with the agreed Pension increase satisfied. “We all feel that times are not getting any easier. (…) It was important to me that low and medium-sized pensions benefit particularly from an increase and that this gives people security for the coming year.”
Pensioners’ Association: Increase “completely inadequate”
On the other hand, the red pensioners’ association is dissatisfied. Its president Peter Kostelka describes the 1.8 percent as “completely inadequate”. That has nothing to do with securing purchasing power. “We demand at least two percent,” said Kostelka. For the Pensioners’ Association, “the three percent for small pensions are also too little to reduce old-age poverty.” That must go in the direction of four percent. “
