The National Institute of Statistics (INE) published the final CPI data for November this Tuesday. pension In 2024. Finally, contribution payments will increase by 3.8%. January 1 of next year Retirees will now have their benefits recorded in their payroll in the first month of the year with the updated tables.
Increase contribution based pensionThe pension, which is the most common among retirees and is currently received by approximately 10 million people, will increase according to the average development of retirees. CPI They will maintain their purchasing power in 2023.
In 2024, it will be the third year that the new formula comes into force, in which the former Minister of Participation and Social Security, José Luis Escrivá, agreed with employers and unions to automatically re-evaluate contributions every year. This is the result of calculating the average inflation between December of the previous year and November of this year. For the next year, this rate was 3.8%.
So, if the average contribution is currently 1,197.9 euros (based on payroll paid in November), it will increase to approximately 1,243.3 euros from January. 45 euros average increase. All contribution pensions paid due to widowhood, temporary disability or orphanhood will also increase at the same rate. maximum pensionits share will increase at the same rate 3.175 euros The monthly gross is 116 euros more than in 2023.
In Spain, the largest number of contribution-based pensions paid by Social Security, pensionSpecifically, approximately 6.4 million benefits. These are followed by retirement widowhoodabout 2.3 million permanent disability (0.9 million) and orphans (0.3 million).
Minimum retirement expected
Currently the minimum amount of non-contributory pension 565.37 euros per month (or 6,784.44 euros per year) and the Government foresees a more intense increase in these benefits received by the most vulnerable than others. There are around half a million people in Spain who receive a non-contributory pension, whether it is minimal or due to disability.
Social Security forecasts an increase of around 200 thousand. 6.8% for next year, but this is a preliminary calculation that should be confirmed in the coming weeks. In fact, it is possible that non-contributory pensions will finally rise below 6.8%, given that overall inflation finally increased by less than the Government expected in the middle of the year.
amount Minimum Vital Income The state minimum income (IMV), which nearly two million people receive according to Social Security data, is also awaiting the Government’s final decision to reassess it for next year. The amount available varies between €565.37 and €1,243.83, depending on the number of people in the co-living unit.
‘Paguillas are disappearing’
The new pension calculation system eliminates formulas applied in the past, such as ‘payments’ made to compensate for the difference between the final CPI and the increase approved by the Government at the beginning of the year. Such an income, which was common decades ago, did not exist in 2023, neither this year nor in the coming years. Now traditional ‘paguillas’ are disappearing from pension slips.