With just under two weeks to go before the end of 2022, there are almost ten million pensioners in Spain who are wondering now, with Christmas just around the corner, when pensions will rise for the next twelve months. Precisely in this sense, the first thing to know is how much these benefits will rise in 2023. Well, to answer this question, you have to look back. Although not very far. It was only a week ago, when the INE established the final CPI for the month of November, which finally moderated by 6.8%. But, what value does this data have, relative to the inflation rate, to calculate the amounts of pensions in 2023?
It should be remembered that with the first pension reform, approved a year ago -on December 27, 2022-, promoted by the Minister of Inclusion, Social Security and Migration, José Luis Escrivá, the amount of money to be received by the beneficiaries, which includes the benefit for disability, permanent disability (total, absolute or severe disability), as well as death (widow, orphan and in favor of relatives), will be revalued annually according to the evolution of the CPI, which will be 8.5% for contributory pensions, that is, those managed by Social Security, while non-contributory pensions, that is, the lowest benefits, will experience an increase of up to 15%.
The pension reform explains, therefore, that, since the beginning of the year, pensioners have not received what is now known as the ‘pension payment’, which is normally received twice a year, in summer and at Christmas. However, in the absence of the last council of ministers of the year, it remains to be confirmed that the coalition government approves the second part of the pension reform, which entails a series of changes to take into account. This is the case, for example, the Minister of Social Security, José Luis Escrivá, is considering applying changes to partial and active retirement, two modalities that can help alleviate the financial pressure that today’s society is enduring. Social Security and that will increase in the coming decades with the retirement of those already known as the ‘Baby boomers’, characterized by the high birth rate of those born between 1946 and 1964.
When are they going to pay the rise in pensions?
The increase in pensions, contemplated in the General State Budget for 2023, and waiting for the Government of Spain to finally approve it in the Council of Ministers, and subsequently, decree it, will enter into force next January 2023. Therefore, the new amounts of said social benefits will begin to take effect from the first month of the year. Among the many novelties to take into account, the maximum contributory pension will exceed, for the first time in history, 3,000 euros. On the other hand, in the case of non-contributory, a minimum amount is guaranteed that will go from the current 457.22 euros to 525.80, which means an average of 70 euros more per month.
This unprecedented increase, led by the Executive of Pedro Sánchez, aims to combat the rate of inflation triggered by the Russian invasion in Ukraine, which in August of this year reached its highest peak, reaching 10.4 %. There is no doubt that this increase seeks to alleviate the effects of the war that have been directly reflected in the price of the electricity and gas bill, fill the shopping basket, as well as go to the gas station to refuel the tank of the diesel or gasoline vehicle.
Despite this, it does not seem that this measure is enough or SMI, which is currently recorded at 1,000 euros gross per month. To get an idea, the 8.5% increase for contributory taxes will mean an increase of about 107 euros on average, which will place the average amount at around 1,364 euros. Also, for those pensioners who belong to the General Regime, the increase will be about 120 euros, although if they have just retired, the average pension will amount to 1,550 euros.
