Poland's average pension outpaces inflation says minister

This year's increase of the tax-deductible allowance to PLN 30,000 (EUR 6,352) a year from PLN 3,091 (EUR 654) is yet another benefit that pensioners can enjoy, Maląg said. Radek Pietruszka/PAP

The growth of the average pension in Poland has been higher than the annual average inflation in the past seven years, according to Marlena Maląg, the family and labour minister.

"In 2015, it (the average pension - PAP) amounted to PLN 2,000 (EUR 424), and now it's over PLN 2,600 (EUR 551)," Maląg told PAP on Thursday, adding that the cumulative growth was about 30 percent.

Maląg went on to say that "the growth in the old-age and disability pensions has been higher than annual average inflation over these seven years."

Law and Justice (PiS), the conservative ruling party, came to power in 2015 on promises to raise the standard of living of pensioners, who constitute a considerable part of the party's electorate.

This year's increase of the tax-deductible allowance to PLN 30,000 (EUR 6,352) a year from PLN 3,091 (EUR 654) is yet another benefit that pensioners can enjoy, Maląg said.

"Pensioners who receive (up to - PAP) PLN 2,500 (EUR 529 a month - PAP) do not pay any tax, and further tax changes that were introduced on July 1, a reduction of the (personal income) tax to 12 percent from 17 percent, have provided support to yet another group of pensioners," she said.

The Polish government has also introduced into law the so-called 13th pension, an additional annual bonus of 1,218 (EUR 258) net paid out in the spring to every pensioner, and has been offering a similar bonus, the 14th pension, in the second half of the year, although the latter payment is not yet guaranteed to continue in subsequent years.

"We'll be making efforts to make the 14th pension a permanent solution," Maląg said.