All earnings-related pensions are adjusted annually in January using the earnings-related pension index. The index is confirmed by the Ministry of Social Affairs and Health.
The earnings-related pension index is determined based on the annual change in wage and price levels. The index is calculated so that changes in earnings have a weighting of 20 per cent and the change in prices 80 per cent.
The earnings-related pension index for 2011 is 2323, meaning that all earnings-related pensions were increased by 1,4 per cent on 2010 at the beginning of 2011.
The earnings-related pension index for 2012 is 2407, meaning that all earnings-related pensions are increased by 3,61 per cent on 2011 at the beginning of 2012.
Example of index increment calculation:
The earnings-related pension index for 2011 was 2323 and 2407 for 2012. The pension of the example person equalled 1,500 euro in 2011. The amount of index-adjusted pension for 2012 is calculated as follows:
1,500 x 2407 ÷ 2323 = 1,554.24 euro
