This general budget for the year 2023, approved in November 2022, brings together key measures for civil servants and retirees. A payroll update aligned with the consumer price index raises pensions by 8.5 percent, affecting the social security system that supports death and survival payments, permanent disability, and retirement. In parallel, the baseline pension and the minimum vital income will continue to rise through 2023, with a 5 percent increase applied from July 2022.
These decisions aim to bolster the Spanish economy and limit the erosion of purchasing power, especially for low-income families. These households are most exposed to rising prices and often lack safety nets, making savings margins scarce while facing unexpected expenses or difficulties in making ends meet.
New date for raise in pensions: Retirees will be happy
Beyond aligning pension revenue with the CPI, additional measures were introduced to inject liquidity into households. A 200 euro check was issued to provide stimulus to income during the year.
Repayment to retirees
On March 16, the government announced steps to expand pensioners rights, address the gender gap, and create a sustainable framework for the public pension system. This also includes the refund of funds wrongly collected from retirees through improper pharmaceutical contributions.
This means retirees earning less than 5,365 euros annually and with total income under 11,200 euros, who are not required to file an income tax return, will be exempt from drug payments. Approximately six million retirees fall into this category nationwide.
The erroneous pharmaceutical contribution led some retirees to pay sums that should not have been charged for medicines. The General Directorate of State is arranging the reimbursement through the Social Security system. Payments will be issued over the next six months and will be deposited directly into the pensioners’ bank accounts, with the amount reflecting the actual medicines purchased.