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What is the maximum pension in 2023?

Date: May 28, 2023 Time: 23:18:04

The early payment of pensions in the first month of the year in the case of some banks, between January 24 and 25, has produced a knock-on effect among the almost ten million pensioners in Spain. The question is none other than knowing what the maximum pension is in 2023

In other words, these economic benefits are subject to the same taxation as the income from the work of an employee employed by another. Therefore, the minimum rates range from 9.5% for amounts less than 12,450 euros per year to 18.5% for maximum pensions, that is, those that reach 42,823.34 euros per year. And it is that, incredible as it may seem, almost half a million retirees earn more than 3,000 euros per month. To be more exact, up to 463,657 pensioners.

Having said this, the maximum limit for receiving public pensions in 2023, as reported by Social Security from its website, is 3,058.81 euros per month. All this without prejudice to the extraordinary payments – at the end of June and November that could correspond to the holder, whose amount is also affected by the aforementioned limit.

Revaluation of the maximum pension in 2023

The Government of Spain announced at the end of November of last year the increase in contributory pensions by 8.5%, which was later included in the General State Budget 2023. The objective of the Executive of Pedro Sánchez is that “the pensioners do not lose purchasing power” and “modernize the pension model”. This was made known last week by Minister José Luis Escrivá, who from the Ministry of Social Security sent a letter to millions of pensioners -retired, permanently disabled, widowed, orphaned- to make them participants in the revaluation.

Likewise, from the Social Security they will clarify that pensions that exceed 3,058.81 euros per month will not be revalued, with exceptions. Yes, in no case may the annual amount exceed 42,823.34 euros.

It should not be forgotten that the Russian invasion of the Ukraine, now in its eleventh month, caused inflation to skyrocket, breaking the double-digit barrier for the first time in thirty years. It was in August 2022 when it reached 10.4%, which was fostered by the high prices of basic foods, fuel or the electricity bill. However, December ended with inflation below 6%. 5.7% to be more exact.

Gender Gap Reduction Supplement

On the other hand, it should be remembered that the gender gap reduction supplement is also increasing, which replaces the previous maternity supplement, and which will be added even when the maximum pension exceeds 3,000 euros per month. In 2022 its import was 27 euros per month per child, with a maximum of four, while as of this same month of January it rises to 29.30 euros. Therefore, a total of 117.20 euros per month can be charged in the event that they have had four or more children.

Puck Henry
Puck Henry
Puck Henry is an editor for ePrimefeed covering all types of news.

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