Revaluation of pensions in 2024 and the effect on permanent disability pensions in Spain
Beneficiaries of permanent disability pensions in 2024 will see notable changes in Spain. According to the Ministry of Inclusion, Social Security and Migration, led by José Luis Escrivá, these pensions are expected to reach around 20% of the average income. This matters for more than one million people who currently receive these benefits.
What to expect for 2024 pension revaluations: the total rise in permanent disability pensions
As part of the second phase of pension reform, a plan was announced for automatic pension revaluation starting January 1, 2024. Pensions will adjust in line with inflation without needing a special budget approval. With an annual inflation of 3.8% from December 2022 to November 2023, the government confirmed that these pensions would rise in step with the Consumer Price Index. The natural question follows: how much will permanent disability pensions increase overall in 2024?
How much will total permanent disability pension increase: impact of CPI
The CPI-based approach protects the purchasing power of permanent disability pensions. On average, a permanent disability pension is projected to rise by about 42.44 euros per month, from 1,117 euros to 1,159.44 euros in 2024. This reflects progress toward the goal of reaching 20% of the average income by 2024 and signals a narrowing of income gaps for beneficiaries.
How much will total permanent disability benefits rise under different regimes?
The increase encompasses general pensions as well as several specific programs. In the General Regime, the pension is expected to reach around 1,180.65 euros monthly. Self-employed workers would see their pension rise to about 879.39 euros per month. Other regimes, including those for maritime and coal mining sectors, are forecast to see larger jumps, with pensions around 1,585.44 euros and 1,939.79 euros per month respectively. These figures help explain how total permanent disability wages change across various sectors.
Long-term perspective: where is this heading?
Looking beyond 2024, the government plans to keep expanding pensions toward 30 percent of the average income in 2025, 50 percent by 2026, and potentially up to 75 percent by 2027 to cross the poverty line. This context is essential when considering how much total permanent disability benefits may increase in the coming years.
Contribution bases and non-contributory pensions
From 2024 onward through 2050, there will be a 1.2 percentage point rise in contribution bases. This change is aimed at the long-term sustainability of the pension system. It is also worth noting that non-contributory pensions for retirement and disability are expected to grow faster than contributory pensions, continuing the trend seen in recent years.
Join BİLGİ WhatsApp channel
In summary, 2024 marks a pivotal step toward greater fairness in permanent disability pensions. Beneficiaries can anticipate substantial improvements in their quality of life, with meaningful increases across all categories and programs.