Pensions will grow on average by 23% in Latvia this year

This year, an index of 1.2287 will apply to retirement, disability, survivor's pensions and reimbursements, meaning that fully indexed pensions will grow on average by 23%, the Ministry of Welfare (LM) said on August 8.

The index consists of an actual consumer price index, or inflation, for the period from August 1 2021 to July 31 2022 and 50% of the actual increase in the salary amount of insurance contributions, which is the sum of all the money from which social security contributions were to be paid during the year.

As in the past, different indexes will be applied to pensions, depending on the length of the person's accrued insurance. The higher the length of insurance, the higher the index will apply and the higher increases in the old-age pension a person can expect.

Thus, for those people who have a length of insurance of up to 29 years, an index of 1.2287 will apply to the old-age pension; if the length of insurance is between 30 and 39, the index will apply at 1.2314; if the length of insurance is between 40 and 44, the index will be 1.2341. If the length of insurance is 45 and over, the index 1.2369 will apply.

For example, if the old-age pension is currently EUR 370, then for a senior with a length of insurance up to 29 years from October this year the pension will amount to EUR 454.62 (EUR 84.62 higher),

if the length of insurance is between 30 and 39, the amount of the pension will be EUR 455,62 (EUR 85.62 higher), if the length of insurance is between 40 and 44, the amount of the pension will be EUR 456,62 (EUR 86.62 higher). On the other hand, if the length of insurance is 45 years and more, the pension will rise to EUR 457.65 (EUR 87.65 higher).

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