Contributory pensions will be generally revalued by 3.8% in 2024, as will the pensions of the Special Regime of State Pensioners. The Government guarantees the purchasing power of pensioners based on the evolution of the Consumer Price Index (CPI).
Pension
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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 Congress of Deputies. The revaluation is thus regulated until the General State Budget Law for 2024 is approved.
The government believes that the rise in pensions will benefit the most vulnerable people and those who are least able to adjust their income to cope with the upward trend in 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 Regime of State Pensioners 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 pensioners aged 65 and over is set at 11,552.8 euros per year and 14,466.20 euros per year for pensioners with a dependent spouse. Those under that age will receive at least 10,808 euros and 14,466.20 if they have a dependent spouse.
Minimum pensions, non-contributory pensions and the Minimum Vital Income will rise by 6.9%, and widows’ and widowers’ pensions with family responsibilities by 14.1%.
Non-contributory old-age and disability pensions (SOVI) will also be revalued by 6.9% by 2024, reaching 517.9 euros per month, equivalent to 7,250.6 euros per year.
Orphan’s benefits caused by violence against women will experience an increase in 2024 equal to that approved for the minimum interprofessional wage.
The supplement for the reduction of the gender gap in contributory pensions is set for 2024 at 33.20 euros per month. This is the result of adding an additional 5% to the general revaluation percentage of 3.8%.
With these increases, the average retirement pension (1,386 euros per month) increases by 52 euros per month and 734 euros per year. The average pension in the system, taking into account all pension and benefit types (1,200 euros), rises by 46 euros per month and 638 euros per year. In the last two years, the average pension has risen by about 2,230 euros.
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 will receive on average 321 euros more per month than in 2018.
In all these years, the average retirement pension has increased by 29%, which means that the average annual pension is almost 4,000 euros higher than in 2018.
Evolution of the average retirement pension with increase linked to the IPCEvolution of the average retirement pension
What is the income limit for the recognition of minimum pension amounts?
Without a dependent spouse: 8,942 euros per year.
With a dependent spouse: 10,430 per year.
Are all pensions revalued?
No. Pensions exceeding ¤3,175.04 per month will not be revalued, with some exceptions. Under no circumstances may the annual amount exceed ¤44,450.56.
When do pensions go up?
The revaluation will be applied to the monthly amount of the pension in question on 31 December 2023.
The pension increase is effective from 1 January 2024.
When will I know how much I have been increased?
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 benefit from the increase?
Almost 11.8 million pensioners and benefit recipients are preserving or increasing their purchasing power: those receiving contributory and non-contributory pensions, those in the pensioners’ pension scheme, households receiving the Minimum Vital Income and those receiving benefits for dependent children with disabilities. One in four Spaniards are in a situation of greater vulnerability.
Are pensions secure in the future?
The dignity of pensions is assured and pensioners have a stable legal framework that guarantees their purchasing power, relieves their pockets and protects those who need it most. It is the guarantee, both for current and future recipients, that the public system responds, protects and fulfils its commitments.
Is the increase in pensions compatible with the functioning of the system?
The increase is compatible with a strengthening of the system’s income, which continues to improve thanks to the labour reform and other measures that have allowed more and better jobs to be created and economic activity to strengthen, which provides more resources to the Social Security system. Thanks to this, the system’s deficit continues to fall (from 1.6% in 2017 to the 0.5% forecast for this year) and revenue from social security contributions is up 10.3% year-on-year.