Major pension and social security reforms approved for July 2022 rollout
The Federal Council has approved significant changes to pensions and social security, set to take effect on July 1, 2022. Old-age pensions in the west will rise by 5.35%, while eastern regions see a 6.12% increase. Disability pensioners will also benefit from a flat-rate supplement. Additionally, the Artists' Social Insurance Fund will receive a €59 million state subsidy to combat pandemic impacts.
The new law also determines general pension values in the agricultural old-age pension scheme, minimum and maximum care benefits in statutory accident insurance, and adjusts the factor for cash benefits in statutory accident insurance. Notably, the catch-up factor has been reinstated to prevent future pension cuts due to the pension guarantee.
The increase in old-age pensions will come into effect on July 1, 2022, aligning with the main implementation date of the law. Disability pensioners will start receiving their flat-rate supplement in personal income points from the same date. The additional subsidy for the Artists' Social Insurance Fund is expected to be disbursed in 2025.
These changes, approved by the Federal Council on June 10, 2022, aim to provide relief and improved benefits for pensioners and those affected by the pandemic. The increased old-age pensions and disability pension supplements will directly impact a significant number of individuals, while the state subsidy for the Artists' Social Insurance Fund will help mitigate the ongoing effects of the pandemic on the arts sector.
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