The Official State Gazette (BOE) publishes this Tuesday the Royal Decree-Law on the revaluation of pensions for 2025. According to it, from January 1 of next year 2025 more than 12 million pensions will see their amounts increased.
Specifically, the State’s contributory and passive class pensions will rise by 2.8% in 2025; while the minimum pensions will increase by around 6%, and non-contributory pensions and the Minimum Vital Income (IMV) will be revalued by 9%.
The approved rule also includes the application of the solidarity quota, which affects salaries of more than 58,908 euros, from 2025. It also includes the increase in the maximum contribution bases and the increase in the maximum pension up to 3,267.60 euros per month.
Minimum pensions will rise by around 6% by 2025. However, pensions with a dependent spouse and widows with family responsibilities will increase by 9.1% next year, while non-contributory pensions and the Minimum Vital Income (IMV ) will revalue by 9%.
The Mandatory Old-Age and Disability Insurance (SOVI) pensions will also be revalued by 6% by 2025, which means reaching 560 euros per month in the case of non-concurrent pensioners, and 543.60 euros per month for concurrent pensioners.
The minimum retirement pension for single-person households will thus be 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 allowance for a dependent child 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 for a dependent child or minor with a recognized disability equal to or greater than 75% will be at 8,707.2 euros annually after rising 2.8% year-on-year. For its part, the supplement to reduce the gender gap will increase by 8.1% by 2025, up to 35.9 euros per month per child.
Increase in contributory pensions
For their part, contributory pensions will rise by 2.8% by 2025, a measure that will benefit more than nine million pensioners.
The increase in contributory and passive class pensions by 2.8% for 2025 is due to the revaluation formula included in the Pension Reform Law, which takes into account, as a reference to determine the increase in these benefits, the twelve-month average interannual CPI (from December of the previous year to November of the current year), which gives a percentage of 2.8%.
In 2024, contributory pensions were revalued by 3.8% because average inflation was higher, while in 2023 they did so by 8.5%.
The 2.8% revaluation will mean, approximately, 600 additional euros per year for people with an average contributory retirement pension, while the system’s average pensions will increase by around 500 euros per year in 2025.
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, which will also be revalued by 2.8%, according to data from the Ministry of Inclusion, Social Security and Migration.
With the 2.8% increase, a pensioner who receives a pension of 1,441 per month (coinciding with the average 2024 retirement pension) will receive a pension of 1,481.35 euros per month in 2025, which represents an annual increase. of 564.87 euros or 40.3 euros per month in fourteen payments.
Since the entry into force of Law 20/2021, the result of the agreement between the Government and social agents, pensions They are updated every year according to price increases to guarantee their purchasing power, in line with the recommendations of the Toledo Pact.
Maximum pension, maximum base and solidarity fee
The maximum pension is set for 2025 at 3,267.60 euros per month or 45,746.40 euros per year.
Social Security will apply from January 1, 2025 an additional quote, called solidarity quota, for salaries that exceed the maximum base, which for next year will be 4,909 euros per month (58,908 euros per year), after being revalued by 4% compared to 2024.
This solidarity quota will be distributed between employer and employee, although not in the same proportion: around 83.4% will be borne by the company and around 16.6% will be borne by the worker.
The pension reform carried out by José Luis Escrivá when he was Minister of Social Security establishes that, from 2024 to 2050, the maximum contribution bases must annually increase the average CPI of the twelve months prior to November of each year plus an amount fixed 1.2 points.
In this way, by 2025, the maximum base will rise by 4% adding both concepts, up to 4,909 euros per month or 58,908 euros per year.
The so-called solidarity fee consists of an additional contribution for the part of the salary that exceeds the maximum contribution base. YesIt is applied in sections and progressively.
In 2025 this fee will be 0.92% for the part of the salary that exceeds the maximum base by up to 10%; 1% for the part of the salary that is between the additional 10% of the base and 50%, and 1.17% for the salary bracket that exceeds the maximum base by more than 50%.
In 2045, when the measure is fully deployed, the first tranche will have a rate of 5.5%, a rate of 6% will be applied to the second tranche, and 7% to the third tranche.
This additional contribution does not generate the right to a higher pension and affects employees, not the self-employed, who already have their own contribution system established.
New rise in the MEI in 2025
Along with the start of the solidarity quota, in 2025 the excess contribution represented by the so-called Intergenerational Equity Mechanism (MEI) will increase again.
Specifically, the MEI contribution will be 0.8% (compared to 0.7% this year) for both self-employed and salaried workers and regardless of the amount of their salary.
Of this 0.8% MEI contribution that will be in force in 2025, employers will have to pay 0.67% and workers will have to pay the remaining 0.13%.
The MEI will continue to rise until 2029, year from which it will be placed at 1.2%, and what is entered through it is destined to increase the so-called ‘pension piggy bank’.
For the year 2025, and until the approval of the corresponding General State Budget Law, the minimum contribution bases of the contribution groups of the regimes that have them established, will be increased automatically by the same percentage as make the interprofessional minimum wage (SMI) increased by one sixth.
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