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Pensioners could get an extra £13.09 a week from next year.
The Committee for Employment and Social Security has set out its suggested 'uplift' in rates for the island's contributory benefits - which includes the States pension - for 2025 onwards.
If ESS's proposals are supported by other States members, all contributory benefits funded from the Guernsey Insurance Fund and the Long-term Care Insurance Fund will go up from 6 January.
These benefits include the States pension, unemployment benefit, incapacity benefits, parental benefits, bereavement benefits, and long-term care benefits.
ESS wants those funded from the Guernsey Insurance Fund to increase by 4.9% while suggesting benefits funded from the Long-term Care Insurance Fund increase by 4.5%.
The committee says these increases are "in line with established guideline policies".
Pictured: Deputy Peter Roffey, President of the Committee for Employment and Social Security.
If the States agree, the uplifts will mean those receiving the full weekly pension will be paid an additional £13.09, taking their weekly pension to £280.32 - or almost £14,600 per year - an annual increase of £680.
Other benefits such as unemployment, incapacity, parental, and bereavement payments could rise by 4.9% - which is 0.4% above the rate of core inflation said Deputy Peter Roffey, the President of ESS.
Long term care benefits and housing benefits will go up by 4.5% he said - while reiterating his support for wider changes to the way these benefits are funded.
"The Committee is proposing that the rates of the States pension and all other contributory benefits funded from the Guernsey Insurance Fund are increased by 4.9%, 0.4% more than the rate of core inflation for the year to June 2024," Deputy Roffey explained.
"The Committee is also proposing that long-term care benefit and the co-payment paid by people in care in respect of their accommodation and living expenses, be increased by 4.5%. This is in line with the annual rate of ‘core’ inflation (RPIX).
"However, I must stress that these proposed rates are intended to be short-term, interim, rates pending States consideration, hopefully later this year, of more substantive proposals in respect of the Long-term Care Insurance Scheme."
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