Contributory pensions will increase next year by around 2.8%, in line with the rise in inflation, as the Ministry of Social Security announced on Thursday. This implies that an average pension will increase by around 600 euros per year and that the bill for the system will increase by more than 5 billion euros per year. Average pensions in the system will increase by around 500 euros per year. This year, contributory pensions were revalued by 3.8% because average inflation was higher, while in 2023 they were revalued by 8.5%.
The ministry recalls that it will be necessary to wait to know the final CPI data for November, which the INE will publish on December 13, to confirm the exact percentage of increase in pensions for 2025, even if the final data of the IPC generally varies little, if at all. tenth.
This increase will benefit the nearly 9.3 million people who receive 10.3 million contributory pensions, in addition to the 720,148 pensions corresponding to the State’s passive class regime, which will also be increased by around 2.8%. .
A retiree who receives a pension of 1,441 euros per month (coinciding with the average retirement pension in 2024) will receive a pension of 1,481.35 euros per month in 2025, which represents an annual increase of 564.87 euros.
Since the entry into force of Law 20/2021, the result of the agreement between the Government and social agents, pensions are updated each year according to the increase in prices to guarantee their purchasing power, in accordance with the recommendations of the Toledo Pact. .
The Minister of Social Security, Elma Saizstressed that this measure “is a guarantee of tranquility for the 10 million retirees”. “Increasing your pension is social justice. For me, social justice is that your basket and your life can remain the same, without giving up anything,” the minister underlined.
Saiz stressed that the annual revaluation of pensions is a commitment of the Spanish government. “We will continue to work so that the system, an example among the large economies in our environment, is increasingly strong, fair and sustainable,” he added.
As part of the pension reform carried out José Luis Escrivá When I was Minister of Social Security, in 2024, the annual revaluation of the maximum bases and the complement of the gender gap on the basis of the CPI came into force. In the case of maximum bases, a lump sum of 1.2 points is added to the CPI each year of the period 2024-2050.
This means that, for next year, the maximum contribution base It will increase by around 4% (2.8% of the average CPI plus an additional 1.2%), which would put it at around 4,909 euros per month.
While the maximum contribution base increases, the maximum pension will increase in 2025 with the CPI increased by 0.115%, as determined by the pension reform. Thus, with the revaluation of 2.8% of the CPI plus this additional percentage, the maximum pension In 2025, it will amount to 3,267.5 euros per month for fourteen payments, compared to 3,075.04 euros this year.
As part of the pension reform, the capping of the initial maximum pension will start to apply from 2025 and will consist of reassessing the maximum pension with the CPI plus an additional increase of 0.115 percentage points each year until 2050, which will mean an approximate increase of 3% over this period.
Likewise, the pension reform determines that the complement of gender gap (33.2 euros for the current year) will increase the CPI by an additional 10% over the 2024-2025 biennium, which will be distributed between the two years at the rate of 5%. So, by 2025, the gender gap will rise to around 7.8% (average CPI plus 5%), putting it at around 35.6 euros.
To improve the equity and adequacy of pensions, the reform approved by the government with Escriva as minister envisages improving non-contributory pensions to reach the minimum poverty threshold. This year, the increase they experienced was 6.9%, higher than the 3.8% increase in contributory pensions.
Thus, once revalued in accordance with the CPI, non-contributory pensions will also be increased to reduce the existing gap by 20% until reaching 0.75 of the at-risk-of-poverty threshold calculated from the Survey on Living conditions from the National Institute of Statistics (INE) for a single-person household.
Likewise, the minimum amount of contributory retirement pension for a holder over 65 years of age with dependent spouse, once revalued on the basis of the CPI, will further increase to reduce the existing gap by 20% up to to reach 1.5 of the risk threshold. of poverty.
The objective is for the minimum contributory retirement pension with dependent spouse to reach at least 16,500 euros per year in 2027 (1,178.5 euros per month for fourteen payments).
