Updated
Indexes in pensions
The purpose of the indexes is to ensure that the level of pensions is maintained. Two indexes are used in earnings-related pensions: the earnings-related pension index and the wage coefficient.
The Ministry of Social Affairs and Health has confirmed the earnings-related pension index for next year at 3,184 and the wage coefficient at 1.773. Earnings-related pensions currently in payment will increase by approximately 2.58% at the beginning of next year compared with 2026.
The wage coefficient is used to adjust the earnings on which the earnings-related pension is based when the pension is calculated. Compared with 2026, the wage coefficient will increase by approximately 3.56%.
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Index adjustments of earnings-related pensions
The wage coefficient is used to adjust career earnings to the level of the year when the pension begins. In the wage coefficient, changes in employees’ earnings level account for 80%, and changes in consumer prices account for 20%.
The earnings-related pension index automatically adjusts the amount of pensions and rehabilitation allowance paid by pension providers every January. No separate application for the index adjustment is needed. In the earnings-related pension index, changes in consumer prices account for 80%, and changes in earnings level account for 20%.
Information on index adjustments of earnings-related pensions
Example:
If a person retires on old-age pension no later than 1 December 2026, the pension will be adjusted on 1 January 2027 using the earnings-related pension index. Applicants who are employed must note that the employment relationship must end before the pension begins. So, if the pension starts on 1 December 2026, the employment must end no later than 30 November 2026. The applicant must terminate the employment themselves, and it is advisable to check the notice period well in advance.
If, on the other hand, the old-age pension starts on 1 January 2027 or later, the earnings underlying the pension as of 31 December 2026 will be adjusted to the 2027 level using the wage coefficient. After that, the pension will be adjusted annually at the beginning of January using the earnings-related pension index.