Only pensions up to 2,500 euros will be fully adjusted for inflation. Coalition negotiators announced this at a press conference on Friday. For pensions above that amount, there will be a fixed increase of 67.50 euros per month. On average, the adjustment will amount to 2.25 percent. Representatives of senior citizens had already rejected this coalition compromise in advance, demanding full inflation adjustment for all pensions.
Social Minister Korinna Schumann (SPÖ) emphasized that 71 percent of pensioners will receive full compensation for inflation. She therefore considers the solution “fair.” She regretted that no mutual agreement could be reached with pensioner representatives: “I am sorry that we cannot meet all their demands,” Schumann said, referring to the difficult budgetary situation. However, she noted that there had been a respectful exchange and does not believe this disagreement will lead to lasting conflict in negotiations on other issues.
ÖVP parliamentary group leader August Wöginger described the outcome as fair. He pointed out that despite the fixed increase, a pensioner with 3,000 euros will still receive more in absolute terms than one with 2,000 euros, and therefore sees the graduated model as justified. Asked whether this decision sends a signal for upcoming civil servant wage negotiations, Wöginger said no, but added that given the overall situation, a moderate approach to future agreements had been demonstrated.
NEOS social policy spokesman Johannes Gasser welcomed the pact, stressing that the lower adjustment will save 1.4 billion euros in the budget over the legislative period. This year alone, costs are expected to be 350 million euros lower than they would have been with full inflation adjustment. For the future, Gasser wants the total pension income to serve as the basis for adjustments, meaning different pensions would be added together.
Cuts For Luxury Pensions
This would allow cuts to be targeted at luxury pensions. However, including state employees would require a constitutional amendment. Gasser said the opposition must also take responsibility here. Specifically, if someone receives a 3,000-euro pension, it will only increase by the fixed amount next year. But if the same person also receives a smaller additional pension (such as a widow’s pension or from secondary employment), that smaller pension will be fully adjusted for inflation. If the pensions were added together, the entire pension would only be raised by the fixed amount.
The coalition negotiators did not provide a specific reason why the threshold was set at 2,500 euros this year. Wöginger stressed, however, that the limit is above both the median and average pension (1,704 and 1,840 euros respectively; 2,297 and 2,238 euros for men).
