2024 starts with an increase in pensions and VAT on food, electricity and gas is still being reduced

Below are some elements of daily life that may increase, decrease, or remain the same as at the beginning of 2024.

Pension

– With the beginning of the year, the pension It will revaluate by 3.8%, The increase to be applied to premium and passive classes, calculated with inflation data between December 2022 and November 2023.

– Minimum and non-contributory pensions will increase by 6.9 percent, and the minimum widow’s pension including family responsibilities will be equal to the minimum pension from the dependent spouse, representing an increase of 14.1 percent.

– Non-contributory old-age and disability pensions (SOVI) will also be revalued by 6.9% in 2024, meaning that it will reach 517.9 euros per month.

IM V

– In accordance with the minimum salaries, HE minimum vital income (IMV) will also gain 6.9% valueAn additional additional payment of up to 604.38 euros per month will be required, depending on the number of minors in the household and their age.

minimum wage

– HE interprofessional minimum wage (SMI) will start the year frozenDepending on the agreement reached between the Ministry of Labor and social actors, this amount, which is at the level of 1,080 euros per month in 2023, will then be applied retroactively as of January 1.

The increase they are negotiating ranges from the 3% proposed by employers to the 4% the Government has tabled, and at least reaches the 5% demanded by the unions, although there are hurdles beyond the revaluation rate. Approve SMI by agreement.

quotes

– Minimum contribution base currently in force 1,260 eurosIt will increase by the same amount as SMI.

– The maximum contribution base will increase by 5% to 4,720.5 euros per month, reflecting the planned 3.8% increase – the same general increase in pensions – and the additional 1.2% set for these higher salary bases in the reform. .

To this increase will be added the increase from the intergenerational equality mechanism (MEI); this rate will be 0.70% by 2024, based on contributions for common contingencies, of which 0.58% will be borne by the company and 0.12% by the company. worker.

civil servant salary

– Salaries of civil servants frozen year will beginIt is expected that the 2024 budgets will be approved in accordance with the salary agreement reached for the public sector, which includes a 2 percent fixed increase for 2024 and a 0.5 percent variable increase if the harmonized CPI for 2022, 2023 and 2024 exceeds 8. %.

According to Finance Ministry sources, this increase, once approved, will have retroactive effects from January 1.

Food VAT

– VAT will remain at 0% on basic foods (bread, flour, milk, cheese, eggs, fruits, vegetables, legumes, tubers and grains) and 5% on pasta and oils in the first semester.

Butane

– Retail price of the product butane cylinder will remain at 15.14 euros In the early stages of 2024, as determined in the last review last November.

However, these levels, which are not free, will be reviewed again on the third Tuesday of January in accordance with the regulations.

In any case, at least until next June 30, the maximum price that butane can reach, following the extension accepted by the Government, will continue to be set at 19.55 euros per cylinder.

Electric

– There are more unknowns about the regulated electricity tariff or PVPC, which has a new formulation and markets will be gradually included in the future. more price stability– It will start broadcasting on January 1.

For now, electricity futures on the OMIP operator are trading at 80.9 euros for January 2024; It rose to 75 euros for the first quarter and 80.4 euros for the whole year.

– At the fiscal level, the increase in VAT on electricity in invoices will be noticed, which will increase from 5% to 10% throughout 2024, but this rate will remain far from the traditional 21%, which has not yet returned next year.

This increase will be partially offset by electricity charges, which will remain at their current level, about 55% below what they were before Russia’s invasion of Ukraine.

Gas

– However, in case of natural gas supply, VAT will be 10% for the first three months.

– According to the published review, where a 15% limit is applied to the increase in raw material costs, the individual Last Resource Rate (TUR) for gas will increase by an average of 8.19% as of January 1. prevents a larger recovery.

Telecommunication

– Movistar (Telefónica) will increase its rates by one to three euros per month from next January 15, except for customers benefiting from a commercial promotion.

– Vodafone will also increase its tariffs by 4.38% in the first quarter of 2024, in line with the annual average inflation, which represents an average increase of 1.64 euros.

In both cases, these increases are lower than those implemented at the beginning of 2023, when Telefónica increased by an average of 6.8% and Vodafone by 8.1%.

– Orange and MásMóvil have not reported rate increases for now, while Digi, the country’s fifth operator, has ruled them out.

Fuels

– From January 1 Fuel for professional transporters will no longer have bonuses The diesel they used so far was 5 cents per liter.

This subsidy started on April 1, 2022, and at that time it was 20 cents per liter for all drivers, not just professionals. The government extended and gradually reduced this period only for transporters throughout 2023.

Transport

– This is what the government did: expand subsidies public transport Thus, as long as municipalities and city councils complete the discount and reach 50 percent, a 30 percent discount will be provided for metro and city buses.

– In addition, state-owned suburban and medium-distance rail services will be free for frequent travelers throughout 2024 and half price for high-speed medium-distance trains (Avant). The same situation will happen on state bus lines.

tolls

– Ministry of Transport and Sustainable Mobility updated highway tolls The rate of state ownership under administrative concession for 2024 will increase from January 1 to between 5 and 6.65%, depending on the specific conditions of each concession.

– If the planned supports were not continued in 2024, the increase in the toll would exceed 8.5 percent.

Send message

– On January 1, new Postal tariffs will come into force, so that the price of each ordinary national letter weighing up to 30 grams, which is the most used product, will increase by 4 euro cents to 0.82 euros.