Contributory pensions will increase by 2.8% next year, but minimum pensions will increase by 6% and non-contributory pensions will increase by 9%, the same as the minimum vital income (IMV). The Council of Ministers approved this Monday a Royal Decree-Law that includes the revaluation of the pensions of the Social Security system, passive classes and other public benefits for 2025 and has given way to the “solidarity quota” that will pay the highest salaries for sustain pensionsas well as the increase in the Intergenerational Equity Mechanism to 0.8%.
The increase in contributory pensions is the result of the average consumer price index (CPI) between December 2023 and November 2024, according to the formula established in the pension law. The revaluation will mean, approximately, 600 additional euros per year for people with an average retirement pension, while the system’s average pensions will increase by around 500 euros per year. This increase will benefit the nearly 9.3 million people who receive 10.3 million contributory pensions, in addition to the 720,148 pensions corresponding to the State Passive Classes Regime.
Thus, a pensioner who receives a pension of 1,441 euros per month (coinciding with the average retirement pension for 2024) will receive a pension of 1,481.35 euros per month in 2025, which represents an increase of 564.87 euros per year. The supplement to reduce the gender gap is revalued by 8.1% over the amount recognized in 2024 and reaches the amount of 35.9 euros per month per child. The Government has also agreed this Monday on an increase in minimum pensions , non-contributory (PNC) and minimum vital income. The system’s minimums will rise around 6% in 2025, according to the Ministry of Social Security. However, this percentage is higher for pensions with dependent spouse and widows with family responsibilities that will increase by 9.1%. Non-contributory pensions and the Minimum Living Income will be revalued by 9%.
While, SOVI pensions (mandatory old-age and disability insurance) will be revalued by 6% by 2025, which means reaching 560 euros per month in the case of non-concurrent, and 543.60 euros per month for concurrent. And the minimum retirement pension for single-person households is set at 12,241.6 euros per year (compared to 11,552.8 euros in 2024) and 15,786.4 euros in cases with a dependent spouse (in 2024 it was 14,466. 2 euros). The dependent child allowance or minor with a recognized disability equal to or greater than 65% will reach 5,805.6 euros per year in 2025, while the allowance per dependent child or minor with a recognized disability equal to or greater than 75% stands at 8,707.2 euros per year, that is, a year-on-year increase of 2.8%.
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The Council has also given free rein to the rise of the Equity Mechanism and the ‘solidarity quota’ who will pay the highest salaries to support pensions. In the latter case, the applicable contribution rate will be progressive based on the three established yield bands (0.92%, 1% or 1.17%) and will gradually increase from 2025 until 2045, where it will be reached. the definitive type.
For its part, the MEI contribution remains at 0.8%, with a distribution of 0.67% paid by the employer and 0.13% by the worker. The maximum contribution base increases in 2025 in accordance with the increase in inflation and an additional percentage. To ensure the contributory nature of the Social Security system, this increase will be accompanied by an increase in the maximum pension (3,267.60 euros per month).
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