The general increase in pensions will be 2.8% in 2025, according to the average inflation of the previous year. The increase is now official, after the publication of the final CPI data for November, 2.4% year-on-year, which confirms the Social Security forecast announced two weeks ago.
Since the 2021 pension reform of the Coalition Government, the annual revaluation of pensions was once again linked to prices. Specifically, the increase is applied according to the average CPI of the previous year, taking into account the interannual CPI data from December to November. On this occasion, the increase is 2.8%.
“Almost 10.3 million contributory Social Security pensions will increase by 2.8% in 2025,” the Ministry led by Elma Saiz had announced at the end of November. The more than 720,000 Social Security Passive Class pensions are also revalued at 2.8%.
The increase could mean “close to 600 euros per year for an average retirement pension and 500 for the system’s average pension,” the Ministry has highlighted.
Waiting for the increase in minimum and non-contributory rates
The 2.8% increase will apply to most benefits, although minimum and non-contributory pensions will rise more. This has been confirmed by the Ministry of Social Security, although it has not yet reported what increase will be applied to these lower pensions.
The Secretary of State for Social Security, Borja Suárez, said a few days ago that the figure had not yet been finalized, but that it will be “clearly” higher than average inflation.
In the last pension reform, it was also agreed that minimum and non-contributory pensions would increase further until 2027 to narrow the gap with the poverty line. Then, the Ministry made an estimate of the annual increases in these benefits.
The data on the increase in non-contributory pensions is also relevant because it is the reference for the annual increase in another benefit: the minimum vital income (IMV). The minimum income at the state level reaches “665,508 homes” in which just over two million people live, according to the latest statistics published by the National Social Security Institute (INSS).
The maximum pension is expected to be 3,267 euros
On the other hand, it is estimated that the maximum pension will reach 3,267 euros per month next year, 2.9% more than this year, which is 3,175 euros per month.
The increase in the maximum pension is somewhat higher than the general increase in benefits because in the second block of the pension reform it was agreed that the highest salaries would contribute more to the Social Security system and, in parallel, the maximum pensions They would also increase somewhat more.
In 2024, this deployment of this higher contribution for high salaries, for the maximum contribution bases, began, which increases each year with the CPI plus 1.2 percentage points. On the other hand, 2025 will be the first in which the progressive increase in the maximum pension is applied, which in its case is the average CPI plus 0.115 percentage points each year. Thus, in 2025 the increase results in 2.915% more for the highest pensions in the system.
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