The agency responsible for official statistics announced on Thursday the final November CPI figure, a key reference for setting the increase in contributory pensions for 2025. Based on the average inflation over the past twelve months, a 2.8% rise is established for contributory pensions starting January 1, 2025. In concrete terms, the average retirement pension will rise from 1,448.8 euros per month to 1,489 euros, about 40 euros more each month. At present, the State administers around 10.3 million pensions for nearly 9.3 million people.
For the fourth year in a row, since 2021, the current rule, crafted under a previous administration, states that pensions must follow the inflation of the preceding year. This mechanism aims to preserve pensioners purchasing power against price increases. In practice, each annual adjustment seeks to compensate for those losses in value during the year and to ensure that pensions maintain their spending capacity over time.
Specifically, the law fixes that the reference is the twelve-month average inflation from December of the prior year to November of the current year, used to determine how much pensions should rise from January of the following year, that is, for 2025.
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In practical terms, the advance figure allows for a projection, though the final figure will be confirmed in mid-December. In any case, it is very unlikely that the final number will alter the forecast of a 2.8% rise for 2025, unless the adjustment pushes November’s CPI from 2.4% to 3.1%, which would be an unusual swing in revisions.
Under this rule, pensions rose 2.5% in 2022, 8.5% in 2023, and 3.8% in 2024. For 2025, the 12-month inflation average stands at 2.8%, and that is the amount by which contributory pensions must increase next year. Consequently, the minimum contributory pension will be 750 euros gross per month. The maximum pension, meanwhile, will stand at 3,267 euros.
An increase of 2.8% in contributory pensions will have a budget impact exceeding 5 billion euros in the public accounts for the coming year, regardless of whether new General State Budgets are approved.
It is not yet defined how non-contributory pensions, such as widow’s pensions, will rise in 2025. These benefits do not follow the inflation rule; they depend on government decisions embedded in the General State Budgets. In recent years, non-contributory pensions have risen with more flexibility than contributory ones to broaden social coverage.
According to the rule set by Social Security, the increase for contributory pensions is not based on December’s CPI alone. Instead, it updates on the 12-month average CPI, captured from November of the current year to December of the previous year.
Precisely this year, when inflation began higher than where it ended, this mechanism benefits pensioners. If the most recent CPI figure were used alone, the revaluation would be around 1.5%, but averaging the 12 months brings it to 2.8%, the figure that the Social Security authority will apply in 2025.
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“The revaluation of pensions in line with price increases is a measure of social justice, ensuring that those who worked and contributed all their lives maintain their purchasing power,” stated the minister for Inclusion via a formal office communication.
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The 2.8% revaluation will lift the system’s average contributory pension from 1,260.9 euros in the November payroll to 1,296.2 euros, about 35 euros of average increase. This rise covers all contributory benefits, from permanent disability to retirement or widow’s pensions.
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The increase will apply to all contributory benefits and will push the maximum pension to 3,267 euros gross per month in 14 payments, roughly 89 euros more than in 2023. There will also be a slight enhancement for the maximum pension, rising a bit more than the rest, with about 0.115 additional points above the average CPI. Additionally, in 2025 new contributions for higher salaries will come into effect, increasing the Social Security contribution for higher earners.
Regionally, the Basque Country will have the highest average pension, around 1,601 euros, while Extremadura will hover near 1,088 euros. In Catalonia the current average is 1,310.1 euros (14 payments) and will rise to 1,346.8 euros on January 1. Only two communities have the average contributory pension below the national wage floor.
From January 1, the Basque Country average will be about 1,601 euros per month, Catalonia around 1,346.8 euros, and Extremadura about 1,088 euros. Galicia, meanwhile, remains above the national average at 1,402.7 euros per month, compared with 1,296.2 euros on average. These regional differences reflect distinct economic realities and living costs across the communities.