October pension allocations and averages in the contributory system

Basic overview of October pension allocations and averages

October saw a record level of allocations under the contributory pension system, reaching 12,075.3 million euros in ordinary payroll. This amount reflects the regular monthly pensions that are subject to contribution, marking a 10.9% increase from October of the previous year, according to the Ministry of Inclusion, Social Security and Immigration reported on Tuesday.

The regular pension slip surpassed 12 billion euros for the first time in July and again in October, driven by an 8.5% uplift in 2023 resulting from the CPI-based adjustment tied to the December 2021–November 2022 inflation period as part of the pension reform rollout.

The department led by José Luis Escrivá estimates that pension spending represented 11.6% of GDP in the last twelve months, slightly below the impacts seen in 2022 (11.7%), 2021 (12.1%), and 2020 (12.4%), acknowledging the epidemic’s effect on GDP.

Of the 12,075.3 million euros allocated to the ordinary payroll of contributory pensions in October, about 73% went to pensions. The total payout reached 8,816 million euros, up 11.7% from October of the previous year.

Two billion and eight hundred million euros were allocated to widow’s pensions, rising nearly 9.4% year over year, while 1,056 million euros were allocated to permanent disability benefits, up 7.5%.

Orphan benefits amounted to 163.3 million euros (up 9%), and family member benefits totaled 31.9 million euros (up 12%).

Basic pension reach and composition

In October, 10,085,672 contributory pensions were paid, representing an increase of about 1.3% compared with the same month a year earlier. The registry shows just over 9.13 million retirees; more than 6.4 million of all pensions were ordinary pensions, 2.35 million were widow’s pensions, and 944,816 people were permanently disabled. Among them, 340,914 received orphan pensions and 45,340 pensions were issued for family members.

Among all retirees counted in October, 4.6 million are men and 4.5 million are women, with an average of 1.1 pensions per retiree.

The main pension type is retirement for around 6.2 million people, accounting for 60.2% of cases; widow’s benefits support about 1.5 million people (95.9% women); permanent disability pensions cover 940,032 retirees; 323,268 received orphan aid and 44,693 were beneficiaries of relative aid.

Average pension and current trends

The average pension, after applying CPI-driven increases since the start of the year, rose by 9.5% year over year in October, reaching 1,377.2 euros per month.

In the General Regime, the average pension was 1,533.6 euros per month, while the Self-Employment Regime averaged 917.1 euros. Coal Mining averaged 2,685.9 euros, while Marine Mining averaged 1,526.9 euros per month. The latest available data indicates the September average for newly registered pensions at 1,472.5 euros per month.

The average widow’s pension in October stood at 853.3 euros per month, showing a year-over-year gain of 9.3%. Across all pension types (retirement, widowhood, disability, orphanhood, and relatives), the overall average reached 1,197.3 euros per month, up 9.5% as of October 1.

The ministry also reported that the average processing time for pension files in September was 10.8 days, while widow’s pensions averaged 13.1 days. In line with the law, the maximum resolution time remains 90 days for both retirement and widow’s pensions.

Passive classes and state pensions

As of the end of September, there were 698,906 pensions in force under passive classes, a 1.9% increase from the same month in 2022. The monthly payroll for these pensions was 1,495.3 million euros, up 12.5% from the previous year.

The State Regime of Passive Classes primarily includes military personnel and officials of the General State Administration, the Administration of Justice, the General Courts, and other constitutional or state bodies, as well as officials transferred to autonomous communities.

Gender equality measures and supplements

By October 1, 597,531 pensioners benefited from the gender difference supplement, which aims to progressively correct the gap between average pension levels for men and women. The average monthly amount of this supplement is 65.5 euros, with 91% of beneficiaries being women. Among these retirees, 137,911 have one child, 281,384 have two children, 115,542 have three children, and 62,694 have four children.

The supplement has been in force since February 2021 and provides a fixed amount of 30.4 euros per month for each child after the 2023 revaluation, applying from the first child up to a maximum of four. It is claimed concurrently with the pension.

Overall, the October data reflects a sustained increase in both the scale of pensions and the share of beneficiaries across categories, highlighting ongoing impacts of inflation adjustments, demographic dynamics, and policy measures on pension distributions in the country.

Sources: Ministry of Inclusion, Social Security and Immigration; official statistical releases on pension spending and demographics. (Source: Ministry of Inclusion, Social Security and Immigration, 2024).