this 10 million retirees Residents of Spain can’t wait to see how the government will end Update of benefits as of January 1, 2023. A very relevant part of the Spanish economy is decided by this revaluation, up to the point approximately represented by the pension expenditure undertaken by the Manager. 11.8% GDP Spanish. The new reform, designed by the Ministry of Social Security, shows that contribution margins will increase depending on how the CPI ends the year and the Government has already made their forecasts in this regard.
Finance Minister MarÃa Jesús Montero presented last Tuesday the preliminary draft of the General Government Budgets for the next fiscal year. Paying for the public system of 190,687 million euros pensions throughout the next year. This represents about 4 out of every 10 euros administered from the central State. The article is increasing by 11.4% compared to 2022 and that different pensions, both with and without a premium, will be revalued from next year. But how much?
contributing pensions
The vast majority of retirees in Spain receive a supplementary pension of approx. 9.9 million Total; The most common is the pension. New pension law every year They are updated depending on how much you have installed. CPIWithout the need for the government to make any decision or mediate in this matter. The rise in the price level this year is particularly intense, the highest in the last 40 years. What reduces the purchasing power of the vast majority of citizens; though retirees will find that they are protected by this article.
Currently the CPI was up 9% year-on-year in September, but that probably won’t be the number Social Security finally references to update pensions. The law specifies that the reference data will be the average CPI for November compared to the previous 12 months. Well, until 14 December The National Institute of Statistics (INE) does not publish consolidated CPI data, so retirees will not know for sure what the increase they should expect for next year.
However, the Government is already managing the estimates and has set aside funds for the said update. The figure publicly addressed by the executive, revaluing pensions by 8.5% from next yearAs acknowledged by Finance Minister MarÃa Jesús Montero at a press conference. So, if the average pension is 1,257 euros per month, it will increase to 1,363,8 euros from next year.
Non-contributory pensions
Non-contributory pensions are pensions that the beneficiary does not receive on the basis of their contribution (as above), but receives on the basis of benefits granted by the State. The first is paid by Social Security and the non-contributory ones are covered directly from the General Government Budgets through Imserso. The most common are minimum pensions or disability pensions. According to the latest data there 446,822 retired Recipients of non-contributory assistance in Spain; a minimum non-contributory pension of 421.4 euros per month.
These pensions Not revalued according to CPI, but it is governed by the Government’s decision on how to rise or not each year. For example, since April and to mitigate the impact of high inflation, the Manager has decided to increase these amounts by 15% by the end of the year. However, he has not yet announced to the public how much the non-contributory benefits will increase next year.
The Ministry of Finance expects to publish the amounts soon through the Budget accounts. IPREM, an indicator that manages other non-contributory subsidies and has increased at the same rate as minimum pensions in previous years, will increase by 3.6%, according to the government.
Source: Informacion
Christina Moncayo is a contributing writer for “Social Bites”. Her focus is on the gaming industry and she provides in-depth coverage of the latest news and trends in the world of gaming.