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.
Starting from 1 January 2026, the earnings-related pension index will increase pensions in payment by about 0.9%, and the wage coefficient will raise the earnings underlying the pension by about 2.3%. The Ministry of Social Affairs and Health confirmed the indexes at the turn of October–November.
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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 2025, the pension will be adjusted on 1 January 2026 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 2025, the employment must end no later than 30 November 2025. 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 2026 or later, the earnings underlying the pension as of 31 December 2025 will be adjusted to the 2026 level using the wage coefficient. After that, the pension will be adjusted annually at the beginning of January using the earnings-related pension index.