In 2024, beneficiaries of permanent disability pensions in Spain are facing a notable shift in how their benefits are calculated. The Ministry of Inclusion, Social Security and Migration, led by José Luis Escrivá, has announced that these pensions are expected to reach about 20% of the average national income. This update matters for more than a million individuals currently receiving such benefits.
Revaluation of pensions expected in 2024: How much are total permanent disability pensions increasing?
As part of the second phase of pension reform, an automatic reassessment was announced to take effect on January 1, 2024. Pensions will be adjusted to reflect inflation without requiring special approval within the General State Budgets. With an interannual inflation rate of 3.8% between December 2022 and November 2023, the government confirmed that pension revaluations will track the Consumer Price Index. The central question for many is: how much will the total of permanent disability benefits rise in 2024?
How much do total permanent disability benefits increase: The impact of the CPI
The CPI-based approach is designed to preserve the purchasing power of permanent disability pensions. On average, the typical permanent disability pension is expected to rise by about 42.44 euros per month, reaching around 1,159.44 euros in 2024, compared with roughly 1,117 euros currently. This movement signals progress toward reducing income gaps and aligns with the goal of reaching 20% of the average income by 2024.
How much do total permanent disability benefits increase under different regimes?
The increase applies across general pensions and also affects specific regimes. In the General Regime, the pension is anticipated to rise to about 1,180.65 euros per month. Self-employed workers are projected to see their pension rise to around 879.39 euros monthly. Other regimes, such as those for maritime workers and coal mining workers, are expected to experience larger increases, approaching 1,585.44 euros and 1,939.79 euros per month, respectively. These figures help illustrate how total permanent disability wages may shift across different sectors.
Long-term perspective: Where are we going?
Looking beyond 2024, the government intends to continue increasing pensions toward 30 percent of the average income in 2025, 50 percent by 2026, and potentially up to 75 percent by 2027 to reach a defined poverty threshold. This context is important for understanding the trajectory of permanent disability benefits in the coming years.
Increase in contribution bases and non-contributory pensions
From 2024 through 2050, the contribution bases are set to rise by another 1.2 percentage points. This adjustment plays a key role in the long-term sustainability of the pension system. It is also noted that non-contributory pensions for retirement and disability are expected to grow faster than contributory pensions, reflecting recent trends.
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In summary, 2024 marks a pivotal year in the movement toward greater fairness in permanent disability pensions. Beneficiaries can anticipate meaningful improvements in their living standards, with notable increases across all categories and programs.