Austria’s federal government has announced a pension increase for 2025.

Pensions will rise by the statutory adjustment factor, which is based on the average inflation from August 2023 to July 2024. The adjustment is expected to be between 4.5% and 4.7%.

The parliament is set to vote on the pension increase in September.

In addition, the government has decided to freeze salaries for top politicians. Members of parliament will receive only half of the adjustment factor.

The adjustment for state-level pensions will be determined by individual federal states. For example, in Styria, top politicians, including the state governor, will also see their pay frozen.

The government plans to offset inflation for about 2.3 million pensioners fully. The average pension of €1,694 a month will increase by around €78. Pensions above the €6,060 monthly limit will also rise by the same adjustment factor, but only up to this limit.

New pensioners will also get inflation protection for one more year, meaning those retiring regularly in 2025 will have their pensions adjusted for inflation.

Additionally, the pro-rata rule will be suspended until 2026. This means anyone retiring in 2025 will receive the full pension increase the following year, no matter which month they retire.