2024-12-16 23:12:00
Tuesday 17 December 2024, 00:12
In Spain there are 9.3 million people who together receive 10.3 million contributory pensions, which are those generated by the social security contributions of workers and employers. Furthermore, the public body provides over 720,000 services corresponding to the State Passive Classes regime.
A group composed of officials from the General Administration of State, Justice, the Cortes Generales and other public employees moved to the autonomous communities. It also includes military personnel, former presidents, vice presidents and cabinet ministers and other positions.
Everyone already knows how much pensions will increase in 2025: 2.8%, which is the annual average of the consumer price index (CPI) for the twelve months preceding December this year. This revaluation formula is the one established by Law 21/2021 to guarantee the purchasing power of pensions.
This is a decidedly lower increase than that of 2024, when contributory pensions were revalued by 8.5%, in a context of skyrocketing prices.
The Ministry of Inclusion, Social Security and Migration has calculated that the 2.8% increase will mean around 600 euros more per year for a retirement pension, while the system’s average pensions will increase by around 500 euros.
This is how average pensions appear, both in the Euskadi countries and throughout Spain, taking the Social Security statistics as of November 1st as a reference.
Average pensions in Euskadi
-Pension: 1,820 euros per month (+50 euros).
-Disability: 1,523 euros (+41 euros).
-Widow: 1,121 euros (+31 euros).
-Orphanage: 626 euros (+17 euros).
-For family members: 970 euros (+26 euros).
-Total: 1,603 euros (+44 euros).
Average pensions overall in Spain
-Pension: 1,489 euros (+40 euros).
-Disability: 1,198 euros (+33 euros).
-Widow: 924 euros (+25 euros).
-Orphanage: 517 euros (+14 euros).
-For family members: 765 euros (+21 euros).
-Total: 1,296 euros (+35 euros).
Maximum pension
In 2025 the maximum pension will increase slightly more than the rest of the benefits. Specifically, 2.915%, which is the sum of the general revaluation of contributory pensions, plus a percentage of 0.115%.
The reason for this larger increase is that the price caps do not stop. That is, what higher salaries contribute to social security. This increase automatically implies an increase in the maximum pension, although not in the same proportion (the contribution base limit will increase by approximately 4%).
In 2024 the maximum amount that a pensioner can collect is set at 3,175 euros per month, and with the 2.9% increase it will remain at 3,267 euros.
Non-contributory and minimum pensions
It remains to be seen how much non-contributory pensions will increase, those paid to those who do not have fundamental resources for their livelihood, even if they have never contributed or have not done so long enough to collect a contributory pension. They are of two types: disability and widowhood.
The annual amount is set each year in the General State Budget Law. In any case, they will increase more than the average CPI of 2.8%. The latest pension reform established that non-contributory pensions will increase until they converge in 2027 with 75% of the poverty threshold calculated for a single-person household.
Depending on this route, non-contributory benefits will add a further percentage to the general 2.8%. In 2024, these pensions increase by 6.9%, the same as minimum pensions, which are revalued using a similar formula.
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