According to the Law on State Pensions, pension indexation will take place again this year on October 1.
The pension index consists of two components - the actual consumer price index (i.e., inflation) over a 12-month period and a portion of the positive real growth percentage of the total insured income (the total amount of money on which social insurance contributions were made during the year).
In 2025, pensions and compensation amounts — or parts thereof — that do not exceed €1,488 will be reviewed. This amount corresponds to the average insured income in the country for the previous calendar year.
This means that the full amount of pensions and compensations will be indexed if it does not exceed €1,488. For pensions and compensations exceeding €1,488, only the portion up to €1,488 will be indexed. The increase will depend on both the amount of the pension or compensation and the applicable index.
Exceptions apply to politically repressed persons, individuals with Group I disability, participants in the Chernobyl nuclear disaster clean-up, and persons who were granted an old-age pension before reaching the age specified in the Law on State Pensions due to caring for and raising a child with a disability or five or more children. These individuals will have the entire of their pension amount indexed.
This year, different index rates will be applied depending on the individual's accumulated insurance history. The longer the insurance history, the higher the index and the greater the expected pension increase.
In addition to the actual consumer price index, a portion of the real growth percentage of insured income will be considered. The breakdown is as follows:
- Up to 29 years of insurance history: 50% of the real growth percentage
- 30–39 years, or if the pension was granted for work in hazardous or especially hazardous conditions: 60%
- 40–44 years: 70%
- 45 years or more: 80%
Accordingly, the following index rates will be applied:
- Up to 29 years: 1.0635
- 30–39 years: 1.0686
- 40–44 years: 1.0737
- 45 years or more: 1.0787
Example:
If the granted pension amount is €600, then starting from October:
- Up to 29 years: pension will be €638.10 (+€38.10)
- 30–39 years: pension will be €641.16 (+€41.16)
- 40–44 years: pension will be €644.22 (+€44.22)
- 45 years or more: pension will be €647.22 (+€47.22)
For other state pensions and insurance compensations, as well as supplements to old-age and disability pensions for each year of insurance history accumulated until December 31, 1995, the actual consumer price index and 50% of the real growth percentage of insured income will be applied — resulting in an index of 1.0635.
When indexing the supplement, the following will apply:
- €1.62 per year of insurance history until 1995 will become €1.72
- €2.43 per year (if the pension was granted before December 31, 1996) will become €2.58
Example:
A pensioner receiving €610 for 45 years of insurance history and a supplement of €40.50 (for 25 years until 1995) will receive:
- Pension: €658
- Supplement: €43
Indexed pensions and compensations include old-age, service, disability, and survivor pensions granted or recalculated by September 30, 2025.
The goal of pension indexation is to protect the purchasing power of granted pensions and compensations and ensure their value is maintained.
Please note that personal income tax may be withheld from the total pension and supplement amount (non-taxable minimum in 2025 is €1,000), which may reduce the final payment. Pensioners do not need to take any action — indexation will be carried out automatically by the State Social Insurance Agency.