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The increase falls linearly to 1,400 euros, from 2,333 euros it has a fixed cap of 35 euros. The government will decide this Wednesday on this increase, which on average is above the legal adjustment, in the Council of Ministers.
Adjustments cost around € 1 billion
The ÖVP and the Greens assured senior representatives that there will be more at least for small pensions when the legal adjustment factor of 1.5 percent calculated on the basis of the inflation rate is announced. The adjustment announced by the government on Sunday, without a large round of public negotiation, is even higher on average, that is, 1.8 percent.
The pensions of small and medium-sized companies will increase particularly sharply, the compensation allowance will be raised to 1,000 euros. Exactly the most legal 1.5 percent is available with a pension amount of 2,333 euros, with the fixed amount of 35 euros, which also applies to all higher incomes. The costs of the adjustments will amount to around € 1 billion in 2021.
“Corona bonus for retirees”
Federal Chancellor Sebastian Kurz (ÖVP) called, according to a press release, “a matter of justice that the pensions of small and medium-sized enterprises in particular are being increased further.” After the crown bonus for families and employees, the older generation will now also be relieved. Finance Minister Gernot Blümel (ÖVP) stated that the increase means a “crown bonus for pensioners” for whom the current phase is “particularly challenging”, and provides relief for those who do not benefit from the lower tax bracket. .
Motion to the Council of Ministers on Wednesday
Vice Chancellor Werner Kogler claimed credit for the special support of the poorest for his party, the Greens: “In negotiations with the coalition partner, we succeeded in getting the matching allowance to increase the minimum pension by 3.5%. . For the first time, the minimum pensioners would receive 1,000 euros, and two thirds of them would benefit women. “This increase is an important step” to support and alleviate those most affected by poverty, “said social minister Rudolf Anschober. Bring it to the Council of Ministers on Wednesday.
