Record allocations to SGK in April reached 11,962.7 million euros, up 10.8% from the same month in 2022, reflecting contributions for pensions and revaluation. Inclusion is up 8.5% for the current year, according to the Ministry of Social Security and Immigration announced on Tuesday.
Pension spending exceeded 2019 levels in January, totaling over 11,000 million euros for the month. The rise stems from the pension reform that increases by 8.5% through 2023, driven by average inflation between December 2021 and November 2022.
The department, led by Jose Luis Escrivá, oversees pension spending. In the last twelve months, the share of GDP stands at 11.7%, matching 2022 but higher than 2020 (12.4%) and 2021 (12.1%), both influenced by pandemic effects on GDP.
In April, 11,962.7 million euros were allocated for contribution pensions. About 72.8% of this amount funded pensions, totaling 8,711 million euros and rising roughly 11.6% from April of the previous year.
Funds directed to widowhood pensions reached 1,998.3 million euros, while permanent disability benefits received 1,059.1 million euros, up 7.4% from a year earlier. Orphanhood benefits and family allowances totaled 162.9 million euros (+8.7%) and 31.3 million euros (+11.4%), respectively.
Real retirement support for 6.2 million people
In April, 10,026,535 contribution retirements were processed, representing a 1% increase from the prior year and benefiting just over nine million retirees. Among the beneficiaries, more than 6.34 million receive standard pensions; 2.35 million are widows or widowers; 945,690 are permanently disabled; 341,278 qualify for orphan benefits; and 44,811 receive benefits for relatives.
The total number of retirees reached 9,082,603 as of April 1 of the current year, consisting of 4.6 million men and 4.5 million women. The average number of pensions per pensioner is 1.1.
The most common pension is a retirement pension, which covers 6.2 million people. Among recipient profiles, 60.5% are male; the most frequent benefit is widowhood for 1.6 million people, with 95.9% of these beneficiaries being women; permanent disability benefits reach 940,644 retirees; 323,847 receive orphan benefits; and 44,127 receive pensions for relatives.
Average pension now 1,373 euros per month
Following the year’s CPI-driven increases, the average pension in April rose by 9.7% year over year to 1,373 euros per month. Within the General Regime, the average pension stands at 1,531.5 euros monthly, versus 914.3 euros for the Self-Employed Regime. Regional variations show average monthly pensions of 2,674.1 euros in mining and 1,522.1 euros in maritime sectors.
New pension enrollments in March averaged 1,440.8 euros per month. The average widow’s pension in April reached 850.3 euros per month, with the overall system average increasing by 9.7% to 1,193.1 euros per month as of April 1.
The Ministry notes that the average processing time for pension files in 2022 was 21.15 days, including 19.46 days for widowhood cases. In accordance with legal requirements, decisions are issued within 90 days for both retirement and survivor benefits.
Passive classes payroll
As of March, the number of active pensions for passive classes stood at 694,526, up 1.8% from March of the prior year. The monthly payroll for these pensions totals 1,476.8 million euros. The regime encompasses military personnel and officers of the General State Administration, the Administration of Justice, the General Courts, other constitutional bodies, and those transferred to autonomous communities.
Gender gap supplement
As of April 1, 474,526 pensions included the gender gap supplement, designed to progressively equalize the average pensions earned by men and women. The average extra amount for this supplement is 66 euros per month, representing 91.7% of the base pension. Of the 474,526 supplement cases, 22.5% are for retirees with children (106,969); 47.1% have two children (223,790); 19.5% have three children (92,755); and 10.8% have four children (51,012).
The supplement, in effect since February 2021, saw a 2023 cost of 30.4 euros per child per month. It applies from the first child up to a maximum of four and is requested at the time of pension application.