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Monika Petrošiutė. The Indexation of Periodic Benefits

Legislation stipulates that maintenance or damages awarded in periodic benefits must be indexed each year in February. Indexation is the recalculation of fixed periodic payments to compensate for the loss of income due to an increase in consumer prices.

The indexation is calculated by multiplying the periodic payment by the consumer price index and dividing by 100. The result is rounded to the nearest euro. Every year the price index is published on the Official Statistics Portal After the first indexation, recalculated periodic benefits are subsequently indexed. Indexation of periodic benefits is mandatory. Proper indexation of periodic benefits is the responsibility of the person who pays them. Failure to index periodic payments for several years may result in debt.

Periodic payments do not need to be indexed in only two cases where:

  • periodic payments have been granted or changed by a final court decision in the last 6 months before 1 February;
  • the price index is less than 101.

This year, the price index is 100.2 (less than 101) compared to the previous year, so the amount of periodic benefits paid does not change.

Monika Petrošiutė, Associate at Dispute Resolution Practice Group, PRIMUS


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