On 27 December 2023, the Council of Ministers approved a Royal Decree-law that includes the revaluation of pensions and other benefits paid by the social security system, which was validated on 10 January by the Lower House of Parliament.. This means that the revaluation is regulated until the General State Budget Law for 2024 is approved.
The Government estimates that the increase in pensions will favour the most vulnerable people and those who are least able to adjust their income to cope with the rising prices resulting from the conflicts in Ukraine and the Middle East.
How much will pensions rise in 2024?
Social security pensions, in their contributory form, and the ordinary and extraordinary pensions of the Special State Pension Scheme will be revalued by 3.8% for 2023, which is the average inflation between December 2022 and November 2023. This formula was established in Law 20/2021, which guarantees the purchasing power of pensions and was agreed with the social partners.
- The minimum pension for those aged 65 years and over is set at €11,552.8 per year, and €14,466.20 per year for those with a dependent spouse. Those under this age will receive at least €10,808, and €14,466.20 if they have a dependent spouse.
- Minimum pensions, non-contributory pensions and the Minimum Basic Income will rise by 6.9%, and pensions for widows and widowers with family responsibilities by 14.1%.
- Non-contributory old-age and disability pensions (SOVI) will also be revalued by 6.9% in 2024, which means they will reach €517.9 per month, or €7,250.6 per year.
- Orphan's benefits caused by violence against women will increase in 2024 by an amount equal to that approved for the minimum interprofessional wage.
- The supplement to reduce the gender gap in contributory pensions is set for 2024 at €33.20 per month. This has been calculated by adding an additional 5% to the general revaluation percentage of 3.8%.
With these increases, the average retirement pension (€1,386 per month) increases by €52 per month and €734 per year. The scheme's average pension, considering all pension and benefit modalities (€1,200), rises €46 per month and €638 per year. In the last two years, the average pension has risen by about €2,230.
This is the third year that pensions have been revalued in line with the CPI: 3.8% in 2024, 8.5% in 2023 and 2.5% in 2022. Thanks to these revaluations, a pensioner receives on average €321 more per month than in 2018.
Over these years as a whole, the average retirement pension has increased by 29%, which means that the average annual pension is almost €4,000 higher than in 2018.
What is the income limit for the recognition of minimum pension amounts?
- Without a dependent spouse: €8,942 per year
- With a dependent spouse: €10,430 per year
Are all pensions being revalued?
No. Pensions exceeding €3,175.04 per month will not be revalued, with some exceptions. The annual amount may never exceed €44,450.56.
When do pensions go up?
The revaluation will be applied to the monthly amount of the pension concerned on 31 December 2023.
The pension increase is effective from 1 January 2024.
When will I know what my raise is?
The Government has already sent a letter to pensioners to inform them of the revaluation of their pension and the exact amount they will receive.
How many people are benefiting from the increase?
Almost 11.8 million pensioners and benefit recipients retain or increase their purchasing power: recipients of contributory and non-contributory pensions, those of the Passive Class System, households receiving the Minimum Basic Income and recipients of benefits for dependent children with disabilities. This figure represents one in four Spaniards, those in situations of greater vulnerability.
Are pensions secure in the future?
The dignity of pensions is assured, and pensioners now have a stable legal framework, guaranteeing their purchasing power, relieving their pockets and protecting those who need it most. For both current and future recipients, it is the guarantee that the public system will respond to, protect and fulfil its commitments.
Is the increase in pensions compatible with the functioning of the system?
The rise is compatible with a strengthening of the system's revenues, which are continuing to improve thanks to the labour reform and other measures that have enabled the creation of more and better jobs and the strengthening of economic, thereby providing the social security system with more resources. As a result, the system's deficit continues to fall (from 1.6% in 2017 to 0.5% projected for this year) and revenues from social security contributions are up 10.3% year-on-year.
Non official translation