As a result of pension indexation, the average old-age pension will increase by 5.7 percent, or €43, from the current €774.

The state recalculates pensions every spring to keep them aligned with changes in wages and prices. The regulation is established by the government under the State Pension Insurance Act, as the indexation process involves multiple ministries.

In 2025, the estimated cost of pension indexation will be €124,557,000, affecting approximately 325,000 pensioners.

The tax-free income threshold for old-age pensioners in 2025 is set at €776 per month, regardless of their total income.

Each year on April 1, state pensions are indexed based on a formula where 20 percent of the index value is derived from the annual increase in the consumer price index and 80 percent from the annual growth in the social tax contributions allocated to pension insurance.

The established pension index is also used for indexing the daily rate of the Unemployment Insurance Fund's work ability allowance, as well as for compensations related to occupational accidents and diseases.

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