The indexation of pensions in 2023 is an opportunity for older people to increase their benefit, which in the era of raging inflation can help the family budget. However, the annual indexation will change the group of pension recipients without having to pay taxes.
The introduction of the Polish Agreement, and thus the increase of the tax-free amount to PLN 30,000, meant that senior citizens with benefits of up to PLN 2,500 were exempt from paying taxes. From March 2023, some retirees will exceed the tax threshold after indexation. As a result, people who currently receive PLN 2,250 gross pension or disability pension will have to pay taxes next year.
The income tax reduction applies retroactively from 1 January 2022. This means that the tax office will have to refund part of the tax collected since the beginning of the year. The tax refund will cover, among others: old-age and disability pensioners who receive pension and disability benefits exceeding PLN 2.5 thousand. Gross PLN. Holders of lower and disability pensions are exempt from the PIT from the beginning of the year.
The tax refund for pensioners can reach even PLN 600-700. The payment of this money will take place in 2023 and will be caused by the Polish governance and the amendment of the tax reform.
The government assumes that the valuation index in 2023 will amount to as much as 113.8 percent. It is worth noting that in 2023 an amount-percentage indexation will be carried out with a guaranteed increase of PLN 250 gross.
According to the Ministry of Family and Social Policy, the lowest old-age pension, invalidity pension, survivor’s pension and social pension will increase in 2023 to PLN 1,588.44 (currently PLN 1,338.44).
See the calculations for exemplary amounts – from the minimum pension to benefits at the level of PLN 7,500 gross. Details in the gallery above.
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