Pensions could rise by around 2.7 percent in 2026. The expected statutory adjustment value for the increase in pensions has now been determined based on the inflation figures from Statistics Austria’s flash estimate for July. This is because it is calculated from the average inflation rates from August 2024 to July 2025. According to this, the adjustment factor is expected to be 2.66 percent. Of course, politicians can also decide on higher or lower payments.
The government has not yet commented on how it intends to deal with the pension increase this year. The economic and budgetary situation requires “prudent and responsible action about pension adjustments,” the Federal Chancellery said on Friday. Intensive discussions are currently taking place within the coalition. The Ministry of Social Affairs also emphasized that it is working on “a social, fair, and comprehensible solution for the benefit of the older generation and society as a whole.”
Valorization of family benefits suspended
This year, pensions were increased by the statutory adjustment factor of 4.6 percent, capped at the ASVG maximum contribution base of 6,060 euros per month. Family and social benefits were also supposed to increase by the same amount as pensions. Still, the valorization of income-independent benefits—such as family allowances and childcare allowances—was suspended for two years.
The adjustment factor could still change slightly because the current inflation figures still include the provisional value for June 2025 and the flash estimate for July 2025.
- source: APA/picture: pixabay.com
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