Regular Pension Adjustment for 2024 Amounts to 6.55%

(Patria) - The Management Board of the Federal Pension and Disability Insurance Institute, at its session held on April 15, made a decision on the final amount of the regular adjustment for 2024.

According to the decision, pensions are adjusted by a total of 6.55 percent, effective from January 1 of this year.

The adjustment percentage applies to the base amount, which consists of the pension amount for December 2023.

Since pensions have already been adjusted by 5 percent from January according to the advance adjustment model, the Management Board, based on indicators of GDP growth and the consumer price index, made a decision on the final adjustment of an additional 1.55 percent to the base amount from December 2023.

According to official data from the Federal Bureau of Statistics, the consumer price growth rate, measured by the consumer price index (CPI) in 2023, was 5.10% compared to 2022.

Furthermore, according to the estimate of the Federal Bureau of Statistics, the nominal gross domestic product (GDP measured at market prices) growth rate for 2023 is 7.965%, and as such, it is rounded to 8.00%.

Applying the legal formula for pension adjustment of 50% CPI (2.55%) + 50% GDP (4.00%), the final amount of the regular pension adjustment of 6.55% is reached.

The adjustment applies to all pensions except those earned in 2024, with the exception of the lowest and guaranteed pensions.

In accordance with the above, the lowest pension increases from the current 565.18 KM to 573.53 KM, and the guaranteed pension from 674.52 KM to 684.48 KM.

The adjustment decision also includes the highest pensions earned under the current Pension and Disability Insurance Law, the amount of which is limited to five times the lowest pension and, accordingly, amounts to 2,867.65 KM.

When paying pensions for April, the differences between the amounts paid and the finally adjusted pensions for the first three months of this year will also be paid.