In the 2023 state budget, approved in November 2022, a pivotal measure touched civil servants and retirees alike: a payroll adjustment linked to a CPI of 8.5% that raises premium contributions to pensions within the Social Security system, covering death and survival benefits, permanent disability, and retirement. Regarding pensions, the indexation continues to apply a 1 to 3.5 percent increase through 2023 and beyond, with an adjustment to the minimum vital income and payrolls continuing as of July 2022.
These decisions aim to support the economy, preserve purchasing power for households, and especially protect low-income earners whose families often lack a safety margin. The measures acknowledge that rising prices threaten the livelihoods of many families facing unforeseen costs and potential income gaps.
Social Security retirees wonder: Delay in extra summer pay
Alongside the CPI-based income updates from public coffers, several other steps were introduced to bolster family liquidity. Among them is a one-time €200 payment and targeted parental income measures designed to ease households under financial strain.
Good news for retirees! Summer bonus will increase this 2023
In 2023, retirees can expect a larger summer bonus thanks to the updated pension framework and additional fiscal relief. This boost is part of a broader effort to stabilize purchasing power during inflationary pressures and ensure predictable support for elderly residents who rely on fixed incomes.
Repayment to retirees
On 16 March, Royal Decree 2/2023 approved urgent measures to broaden the rights of pensioners, address gender disparities, and establish a more sustainable framework for the public pension system. The decree aligns reforms with safeguarding long-term financial stability while recognizing the needs of current retirees.
Pensioners on the alert: why do some not receive the expected additional summer salary?
There are several eligibility thresholds to determine who receives supplementary payments. Retirees earning below €5,365 per year and with total income under €11,200 are exempt from drug payments and command a large share of the retiree population. In all, these figures cover millions of pensioners who would otherwise face higher costs for medicines.
Additionally, some retirees encountered an incorrect calculation in the pharmaceutical contribution system. Those entitled to free medicines had to pay, and the authorities are preparing refunds through the State General Directorate. Refunds will be issued over the next six months and depend on each retiree’s medicinal expenses, with payments routed to their registered bank accounts. [Source: Official Social Security announcements]