Polish Pension Increase: Who Will Get More in January 2026?
- Increasing living costs in Poland are prompting a growing number of retirees to rejoin the workforce, and a recent legislative change signals government acknowledgement of this trend.
- Prior to January 1, 2026, polish law stipulated that retirees' pension benefits were reduced if their income from employment exceeded 75% of their pre-retirement earnings.
- The amendment, passed by the Sejm on December 15, 2025, with a vote of 235 to 152, eliminates the earnings cap for pensioners.
Rising Cost of Living Drives More Polish Retirees Back to Work
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Increasing living costs in Poland are prompting a growing number of retirees to rejoin the workforce, and a recent legislative change signals government acknowledgement of this trend. The amendment to the Pension Law, effective January 1, 2026, allows retirees to receive their full pension benefits while concurrently earning income from employment without facing reductions in those benefits.
Background on Pension Regulations and Employment
Prior to January 1, 2026, polish law stipulated that retirees’ pension benefits were reduced if their income from employment exceeded 75% of their pre-retirement earnings. This disincentivized many pensioners from continuing to work, even if they desired to do so. The rationale behind the previous regulation was to prevent double-dipping – receiving both a full pension and a full salary for work. However, with inflation reaching 15.6% in 2023 and remaining elevated in subsequent years, the financial pressure on fixed-income pensioners has intensified, leading to calls for reform.
Details of the Legislative Change
The amendment, passed by the Sejm on December 15, 2025, with a vote of 235 to 152, eliminates the earnings cap for pensioners. According to a statement released by the Ministry of Family and Social Policy on December 16, 2025, the change aims to “support the economic activity of seniors and improve their financial situation in the face of rising prices.” The law applies to all retirees covered by the Social Insurance Institution (ZUS), Poland’s primary social security provider.
Impact and Statistics
Data from the Central Statistical Office (GUS) indicates a steady increase in the employment rate of individuals aged 65 and over. In Q3 2024, 7.8% of individuals aged 65+ were employed, compared to 5.2% in Q3 2019. Preliminary estimates from ZUS suggest that approximately 150,000 additional pensioners are expected to enter or remain in the workforce as a direct result of the new legislation. A survey conducted by the Polish Economic Institute in november 2025 found that 42% of pensioners expressed a willingness to work if they could receive their full pension benefits without reductions.
“This change is a crucial step towards ensuring the financial security of our senior citizens and utilizing their valuable skills and experiance in the labor market,”
– Agnieszka Nowak, Minister of Family and Social Policy, December 16, 2025
the government anticipates that increased employment among retirees will also contribute to economic growth and help address labor shortages in certain sectors.