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Date Published: 28/11/2024

Spanish pensions will shoot up by 600 euros next year

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The average monthly pension payment in Spain will increase by 2.8%

Spanish pensions will shoot up by 600 euros next year

Around this time each year, the National Institute of Statistics (INE) crunches the numbers to come up with what’s known as the Interannual Consumer Price Index (CPI). These figures are of special interest to retirees in Spain, as the CPI determines how much their state pensions will go up – or down – in 2025.

The idea of the review is to ensure that pension payments rise or fall with inflation, ensuring that older people who no longer work don’t lose their purchasing power. While the data are still provisional (the official report will come in the middle of December, though it’s unlikely to change), the news is good for those receiving a pension in Spain.

The interannual CPI for November has been set at 2.4%, which means that contributory pensions will increase, on average, by 564 euros next year (+2.8%). It’s important to remember that this is just a general figure: pension payment amounts vary greatly and depend on how much the individual has paid into the system during their working life.

Here’s an idea of how much the average pensions will go up by next year:

The average retirement pension increases from 1,441 euros per month to 1,481.35 euros per month (about 40 euros more per month).
The maximum retirement pension increases from 3,175 euros per month to 3,264 euros per month (89 euros more per month).
The minimum retirement pension increases from 517 euros per month to 532 euros per month (15 euros more per month, 203 euros more per year).

So, in a nutshell, the average total pension in the system, which includes all contributory pensions granted by the State, will increase by around 492 euros per month, that is, from 1,255 euros per month in 2024 to 1,290 in 2025.

The revaluation will affect the nearly 9.3 million people who receive 10.3 million contributory pensions, in addition to the 720,148 pensions corresponding to the State's Passive Classes Regime.

Along the same lines, the maximum contribution base will be raised to 4,853 euros per month. This means that all salaries equal to or less than this amount are required to contribute to Social Security. If the salary is higher, the part of the salary that exceeds 4,853 euros is exempt.

The minimum base is pending the announcement of the increase in the minimum interprofessional salary, which should be revealed in the next couple of weeks.

In other news: Spain embraces money-back system to tackle plastic pollution

Image: Freepik

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