Inflation | Many pensions and benefits will increase from the beginning of August, with the aim of securing solvency when prices rise

Coil national pensions, family pensions and guaranteed pensions will increase starting in August, says the Ministry of Social Affairs and Health. For example, labor market support, the basic part of income support and study allowance will also increase.

Parliament decided on the additional index increase in the middle of the year, because prices have risen rapidly during the year. The purpose is to secure the solvency of low-income pension and benefit recipients.

At the beginning of next year, a new index check will be carried out as usual, after which the additional index increase made now will no longer affect the number of benefits.

The size of the study grant will be reviewed next year, at the end of July.

Individuals benefits will be increased by approximately 3.5 percent. The increased benefits also affect each other, so the final amount of the increase received by an individual or family is therefore case-specific.

The increase covers only a part of the price increase that has taken place so far, because according to the government’s proposal, the index revision is based on the average of the consumer price indices for January-March of this year.

The amount of the full national pension will increase by around 24 euros per month. The increase does not apply to pensions linked to the earnings-related pension index, but the increase in the pension income deduction will somewhat lighten the taxation of those receiving earnings-related pensions.

Labor market support and basic daily allowance will increase by around 26 euros per month, and the basic part of income support by around 18 euros per month. The study allowance of an adult living independently will increase by approximately 14.5 euros per month.

The government according to the presentation, the index revision will increase government spending by around 94 million euros this year, and municipal spending is estimated to increase by around ten million. The increase in pension income deduction is estimated to reduce the tax income of the state, municipalities and parishes by millions.

The recipient of the benefit or pension does not need to apply for an additional check himself.