Pension increase
Definition
The Pensionsanpassung is the increase of pensions on 1 January of each year (§ 108h ASVG). Its yardstick is the reference value, the average inflation of the twelve months from August to July before the increase (§ 108f (3) ASVG); the adjustment factor is set on that basis (§ 108 (5) ASVG). Almost every year, however, parliament sets its own tiers: a rate up to a limit and a fixed amount above it, sometimes a rate that falls as the pension rises. Since 2018 each year's tiers apply to the total pension income, i.e. all statutory pensions of one person together, and the increase is split in proportion to the pensions. Federal civil-service pensions rise at the same time and by the same amount (§ 41 (2) Pensionsgesetz 1965). Anyone who retired only in the previous year often gets the first increase only in part.
Pension increase 2027
On 1 January 2027 pensions rise by 2.95 % up to €6,930, + €204.44 above €6,930. Anyone who retired in 2026 gets 50 % of it (first adjustment: half).
Monthly gross pension, one pension per person. With several pensions the tier applies to the total and the increase is split pro rata.
Every pension increase since 2002
"Median pension prev. year": the previous year's middle gross pension per month (Statistik Austria, annual income ÷ 14), carried forward with the adjustments from 2025 because Statistik Austria has not published those years yet (forecast). The increase itself is set by law for every year; "Gain at the median" shows how the tier worked in the middle. The 2009 increase already applied from the November 2008 pension. "First year": what a pension starting in the previous year got.
The first increase after retirement
How much a pension gets at its first adjustment has changed often. Up to 2004 it was the full increase. From 2005 to 2008 and from 2011 to 2019 a waiting year applied: the first increase came only in the second January after the start date. In 2022 it depended on the start month: January 100 %, 10 points less each month, and anyone retiring in November or December got the first increase only in the January after next. 2023 used the same scale but with at least half for every month (§ 775 (6) ASVG). In 2024 and 2025 this pro rata rule was suspended. Since 2026 every pension starting in the previous year gets half, whatever month it began (§ 108h (1a) ASVG as amended by BGBl I 25/2025). For civil-service pensions § 41 Pensionsgesetz sets the first adjustment separately, with the same result.
One-off payments alongside the increase
In some years there was also a one-off payment, listed here by the year it was paid. It is not part of the pension and therefore does not raise the base for the next year either.
- 2002: Value compensation with the February pension: 1.8 % of the annual pension up to €10,525.17, a capped amount above (BGBl II 439/2001). Subject to wage tax.
- 2003: Value compensation: 1.5 % of the annual pension up to €26,600, half in seven parts in the first half-year, half on 1 July and 1 September (BGBl II 438/2002 as amended by 311/2003). Subject to wage tax.
- 2007: €60 up to a pension of €1,380, €45 up to €1,920, €25 above (§ 629 ASVG); just below the Ausgleichszulage threshold a special one-off (§ 630 Abs 3 ASVG). Subject to wage tax, no health insurance.
- 2008: In November, with the brought-forward 2009 increase: 20 % of a monthly pension up to €747, €150 up to €1,000, falling to €50 up to €2,800 (§ 639 ASVG), subject to wage tax; plus a €210 energy-cost grant for Ausgleichszulage recipients, free of wage tax (§ 638 ASVG).
- 2009: With the December pension: 4.2 % of a monthly pension up to €1,200, phasing out at €1,300 (§ 649 ASVG). Subject to wage tax.
- 2016: €100 in December, tax-free (§ 700a ASVG). From here on every one-off is tax-free.
- 2022: For Ausgleichszulage recipients €150 in March (§ 759a ASVG), €150 in April (§ 759b ASVG) and €300 in September (§ 771 ASVG); for everyone in September a cost-of-living payment of up to €500, phasing out at €2,250 (§ 772a ASVG).
- 2023: Direct payment in March: 30 % of a monthly pension up to €1,666.66, €500 up to €2,000, phasing out at €2,500 (§ 776 ASVG).
Sources: §§ 108, 108f, 108h ASVG und die Anpassungsbestimmungen je Jahr (§§ 607, 617, 634, 658, 663, 666, 711, 717a, 728, 744, 759, 775, 790 ASVG), Kundmachungen BGBl II 439/2001, 438/2002, 598/2003, 531/2004, 446/2005, 532/2006, 359/2007, 450/2009, 403/2010, 398/2011, 434/2013, 267/2014, 417/2015, 341/2016 (RIS); Pensionsanpassungsgesetz 2025; § 41 Pensionsgesetz 1965; Sozialministerium 12.09.2025; Pensionsversicherungsanstalt, Pensionsanpassung 2027; Statistik Austria, Jahreseinkommen der Pensionist:innen.