THE Extra Christmas pay It is one of the most awaited by retired In Spainespecially in a year like 2024, where the cost of living has increased. This additional income, which arrives just before the Christmas holidays, represents financial relief for many retiredallowing them to meet the additional expenses typical of that era. However, despite the enthusiasm it arouses among most retirees, not all retirees are entitled to this Christmas bonus.
THE Social security explains that there are certain types of pensions which, unlike the usual contributory pensions, do not include these extraordinary payments in June and December. The reason lies in the nature of your pension calculation and how your annual income is distributed. This a group of retirees receives their payments in 12 monthly installments, Therefore, the annual amount is divided into equal installments month by month, eliminating double payments. However, for retirees who are entitled to this additional payment, Social Security generally pays the amount at the end of November, although officially the payment corresponds to the month of December. So, banks typically advance this income from November 22, and many retirees see the double income reflected in their bank accounts at the beginning of December. But this is not the case for certain specific types of pensions.
Retirees who will not receive additional Christmas pay
Within the pension system in Spain there are different categories that do not operate in the same way in terms of distribution of payments. So, Some pensioners will not receive the extra Christmas pay because their pensions are prorated across 12 monthly payments.not to mention the extraordinary payments. Retirees in this situation are those who receive pensions derived from work accidents and occupational diseases. In these pensions, the total amount is divided into 12 fixed payments throughout the year.
Additionally, permanent disability pensions belong to the same category. Retirees who receive this type of pension will also not see an additional payment in their accounts in November. This doesn’t mean they earn less throughout the year; In simple terms, your annual pension has been calculated so that it is divided into 12 monthly payments. Thus, the system avoids additional payments in June and December, which happens with ordinary contributory pensions.
Why are some retirees paid in 12 installments instead of 14?
The difference in the number of payments This depends on the nature of the benefit and how the regulatory base is calculated. For retirees whose pension is linked to work accidents or occupational illnesses, extraordinary payments are already included in the initial calculation. This means that at the time of establishing the pension amount, the amount of additional payments was already taken into account, so these are not paid separately in June and December.
This mechanism aims simplify the annual pension distribution processthus preventing the accumulation of additional amounts. Social Security thus guarantees that These retirees receive the same annual amount as those who receive 14 payments, but distributed differently. This also applies to other special pensions, such as those for death and survival (orphan and widowhood)which are also distributed pro rata into 12 monthly payments.
How much do retirees who receive extra Christmas pay earn?
For retirees who are entitled to the additional Christmas allowance, the amount will depend on their regular monthly pension. In 2024, the maximum pension set by Social Security is 3,175.04 euros per month. This means that Those who reach this limit will receive an additional payment of 6,350.08 euros, doubling their income in November.
On the other hand, those who receive the minimum contribution will also receive additional income on this date, although to a lesser extent. The additional Christmas allowance for retirees receiving a minimum pension varies depending on their family situation: those who have a dependent spouse will receive a total of 2,066.60 euros in November, while retirees without a spouse will receive 1,650.40 euros. Those who have a non-dependent spouse, on the other hand, will receive a total of 1,566 euros.
The importance of additional payments for retirees
The Christmas Supplement is essential for retirees who rely exclusively on their pension to cover their expenses. This additional income allows them to meet the expenses of the Christmas period, from gifts and family dinners to payment for services or possible trips. Most retirees who receive 14 payments especially appreciate this income during the holidays, when expenses typically increase.
However, for retirees who receive their pension in 12 instalments, not receiving an extra payment at Christmas should not imply a disadvantage. Social Security designed this system so that all retirees receive the same annual amountregardless of the type of pension they have. Although the lack of an additional payment in December may seem like a loss, the reality is that these retirees are already receiving the same total amount divided into 12 equal payments.
