Every year on October 1, pensions are indexed in Latvia – this is necessary to reduce the impact of inflation on the purchasing power of the elderly, so that they do not deny themselves even more food, medicine, goods and services. This year will not be an exception, but some things in the indexation procedure do not suit pensioners, reports Latvian Radio. This year, as a result of indexation, pensions, depending on the length of service of their recipients, will increase by 6.5-10%, and the size of the indexed part of the pension, compared to 2023, will increase by 74 euros – to 683 euros, said Dace Trusinska, senior expert of the Social Insurance Department of the Ministry of Welfare. Last year, this indexation threshold was 609 euros, therefore, more people can expect that their entire pension will be indexed. "Last year there was only an inflation index, this year this index is mainly driven by wage growth, so old-age pensions are differentiated based on length of service," Trushinska explained. Usually, the index is made up of the actual price growth index over a 12-month period (inflation) and the positive real increase in the amount of wage insurance contributions (all social contributions that should have been paid during the year) as a percentage. But last year, the increase in social contributions was not taken into account when indexing, because in 2022, due to the highest inflation, its real increase in Latvia turned out to be negative – so it did not matter how long a person's work insurance record was. This year, the situation is different, the record is important again – the longer it is, the higher the index applied to the pension. "The supplement that people receive to their old-age and disability pensions will also be indexed, and from October the amount of this supplement will be 1.62 euros and 2.43 euros for each year of service accumulated after 1996," Truszynska said.
Indexation will increase pensions by 6.5-10%. This is 74 euros more than last year.
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