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If inflation rates over the past twelve months are anything to go by, pensions are likely to rise significantly in 2024 – by 9.7 percent.
That is the expected benchmark for adjusting pensions based on the average increase in the consumer price index. However, as Statistics Austria told APA on Monday, the adjustment factor may change because only a flash estimate is available for July, and the June value has not yet been finalized.
Calculation of the guideline value
Background: The Ministry of Social Affairs calculates the reference value based on the inflation rates published by Statistics Austria. The average inflation rate of the past twelve months is used. As soon as the deals for June and July are finalized, the pension increase’s statutory value will be announced. Politicians can then decide on higher allocations.
Last year, all pensions were compensated for the 5.8 percent inflation calculated between August 2021 and July 2020. In addition, there was a socially graduated, tax- and duty-free direct payment distributed in March. However, the latter was not systemic as a result. This means that the current pension increase for 2024 will then only be calculated based on the 5.8 percent increase in pensions without direct payments.
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