It becomes more expensive to purchase insurance length of service from August 1st

Workers who do not have the necessary insurance length of service for retirement and intend to purchase it will pay more from August 1st. Until now, one month of insurance length of service cost about 109.03 euros, and after the change, its price will reach 122.80 euros.

The new amount is a result of the adopted Law on the State Social Insurance Budget, according to which the minimum insurance income for self-insured persons increases from 550.66 euros to 620.20 euros, effective from August 1st. This income serves as the base for calculating the amount paid when purchasing insurance length of service.

The amount is not determined at the discretion of the NSSI (National Social Security Institute) or the NRA (National Revenue Agency), but is regulated in the Social Security Code. For every month purchased, an insurance contribution to the "Pensions" fund is made in the amount of 19.8% - the percentage applicable to persons born before January 1, 1960. It is calculated based on the minimum insurance income effective at the time of payment, and the same mechanism is indicated in the clarifications of the NSSI regarding the purchase of length of service.

The increase becomes even more noticeable with a larger shortage of service. After August 1st, purchasing six months of insurance length of service will cost 736.80 euros instead of the previous 654.18 euros, which is 82.62 euros more. In the absence of one year of service, the amount will grow from 1308.36 euros to 1473.60 euros.

For two years, the necessary contribution will now be 2947.19 euros instead of 2616.72 euros until now, which represents an increase of 330.47 euros. If the shortage is three years, the price will reach 4420.79 euros compared to 3925.08 euros under the old rules - a difference of 495.71 euros. For four years of service, 5894.38 euros will need to be contributed instead of the previous 5233.44 euros, or 660.94 euros more. If a person is short by the maximum allowable five years, after August 1st they will have to pay 7367.98 euros instead of 6541.80 euros. This means the amount increases by 826.18 euros.

However, not every pension applicant needs to purchase the maximum period. If, for example, only seven months of insurance length of service are missing, the necessary amount under the new rules will be about 859.60 euros.

The law allows purchasing only the missing period, and it cannot exceed five years. It is important that two conditions are met simultaneously - the person must have already reached the required retirement age and the missing insurance length of service must be no more than five years.