The indexation of benefits in 2023 will be record high. Unfortunately, this is not good news for everyone. For what reason
The record indexation of benefits will make some seniors pay the tax again.
As the portal reminds “Interia”, the government has planned a record high indexation of benefits, which will take place in March 2023. It will be as much as 14 percent. Unfortunately, this is not good news for everyone. After the indexation of benefits, some seniors may exceed the income limit for the tax-free amount.
Indexation is aimed at increasing benefits so that seniors are compensated for the decrease in the value of money and increases in goods or services. We are currently dealing with record high inflation. Only in October this year, preliminary estimates show that it could have amounted to 17.9 percent. year on year.
According to the government's estimates, next year's indexation of benefits will amount to 13.8%, which means at least PLN 250 more to the benefit. This seems to be good news for all seniors, but “Fact” points out that some seniors will lose out on this.
Not everyone will gain
Indexation at a minimum level of PLN 250 gross means that seniors will get PLN 227.50. This is how much the seniors will get, whose benefit does not exceed PLN 1,800 gross. Above this threshold, the indexation will be percentage-based and will amount to 13.8%.
High indexation will mean that some seniors will again have to pay income tax, from which they were exempt after it came into force higher than the tax. And so, people who receive a benefit in the amount of PLN 2,250 gross as of March 1 will receive the amount of PLN 2,560.50. This, in turn, means that you have to pay PIT. The higher the benefit, the higher the tax.
What do you think?