Retirees’ pensions will rise by at least 3.8% in 2024. This is confirmed by the advance data from the Consumer Price Index (CPI) published today by the National Institute of Statistics (INE). The pink data was handled by the now former Minister of Inclusion, Social Security and Migration, José Luis Escrivá, (4%). This increase will be reflected in the monthly contributions of retirees’ contributory pensions, both in the amounts of the maximum and minimum pensions. In the latter case, this import would foreseeably be greater according to the terms of the latest pension reform, which includes an upward correction linked to the gap with the poverty line.
It must be remembered that the real increase in pensions in Spain in 2024 will be defined by the confirmed CPI for November 2023, calculated with the average of all the monthly readings of the indicator from December 2022 until this month, but it rarely varies at the close of month. , so we can now anticipate the figure that will foreseeably be overcharged. The final data will be known on December 14.
How many euros will pensions increase in 2024?
The 3.8% increase for contributory pensions in 2024 will affect all contributory pensions. This increase would translate into an increase of 1,610 euros per year for the maximum retirement pension -115 euros per month. Taking that percentage increase as a reference, this would be the amount in euros that the maximum Social Security pensions will increase next year.
The maximum pension, now located at 3,059.23 euros per month and 42,829.34 euros per year, will increase by 115.03 euros per month and 1,610.38 euros per year. Thus, the general maximum amount would be 3,182.2 euros per month and 44,439.64 euros per year. Regarding the minimum retirement pension, the amount varies depending on the type of pension and personal situation. The following table shows the changes according to Social Security estimates:
How much do pensions go up?
Until 2011, the year in which all pensions except the minimum and non-contributory ones were frozen, pensions were revalued each year according to expected inflation and then a compensatory payment was paid if the consumer price index (CPI) in November was higher to the set rise.
In 2013, a revaluation mechanism linked to the financial situation of Social Security began, which established a minimum increase of 0.25% while it was in deficit.
In 2018, this mechanism was de facto repealed with the recovery of the so-called “paguilla” which was calculated with the average of the interannual CPI rates of the last twelve months, instead of with the November CPI as was traditional.
This formula was legally adopted in the 2021 pension reform to calculate the annual revaluation, after the parliamentary commission of the Toledo Pact recommended re-linking pensions to the CPI.
How much is the SMI going to rise?
This increase will also be what the Ministry of Labor will defend tomorrow at the social dialogue table to negotiate the interprofessional minimum wage (SMI) for 2024.
The second vice president and Minister of Labor, Yolanda Díaz, assured last week that the SMI must maintain purchasing power and rise in line with the average rate of the CPI between December 2022 and November of this year, which she estimated then would be between 3.7% and 3.8%.
The meeting will be attended by employers who defend a 3% increase for next year (plus another 3% for 2025) and some unions who call the proposal “insufficient” and ask that the inflation of basic products be taken into account. , like food, much higher.
THE NAIS IS OFFICIAL EDITOR ON NAIS NEWS