New date for raise in pensions: Retirees will be happy
The 2023 General State Budget, approved in November 2022, included a significant adjustment for civil servants and retirees. The pension update linked to the consumer price index (CPI) was set at 8.5 percent, increasing pensions and supporting the social security system, including death and survivors, permanent disability, and retirement benefits. In parallel, the minimum vital income and related pension minimums continued to rise through 2023, with a 5 percent increase applying from July 2022. These changes aim to preserve purchasing power amid rising prices and economic pressure.
In addition to the CPI-aligned revenue adjustment, other measures were introduced to inject liquidity into households. A wave of 200 euro checks was deployed to bolster disposable income for the year, providing immediate relief to families facing higher living costs. This package seeks to stabilize household budgets and sustain domestic demand during inflationary periods. [Source: Government Communications]
Repayment to retirees
On March 16, officials announced actions to expand pensioners’ rights, address the gender gap, and establish a sustainable framework for the public pension system. A notable component of this effort is the refund of improperly collected contributions by retirees, ensuring fairness within the system. [Official Statement]
This update means that retirees earning less than €5,365 and with annual income under €11,200, who are not required to file a tax return, are exempt from drug charges. Approximately six million retirees fall into this category, highlighting the scope of the policy. [Government Data]
The pharmaceutical contribution margin error had forced some retirees to cover sums they should not have paid for medications. The General Directorate of State is arranging reimbursement, with payments to be issued over the next six months. Disbursements will be made directly to the pensioner’s resident bank account, and the amount will correspond to the medicines actually purchased. [Public Announcement]