Contributory pensions will rise by 3.8% with the arrival of 2024 and non-contributory pensions, by 6.9%

The average retirement pension will rise by 52 euros per month next year and the average pension will rise by 46 euros per month

MADRID, 30 Dic. (EUROPA PRESS) -

Contributory pensions will rise by 3.8% with the arrival of the new year, while the minimum contributory pensions will increase by 6.9%, except for those of widows with family responsibilities, which will increase by 14.1%, from 905.9 euros current up to 1,033.6 euros per month. For their part, non-contributory income and the Minimum Living Income (IMV) will also increase by 6.9%.

With this 3.8% increase that contributors will experience in 2024, the average retirement pension will increase by 734 euros per year or 52 euros per month, while the system's average pension, currently 1,200 euros per month, will increase by 638 euros per year, which means 46 euros more per month.

This percentage of 3.8% by which contributory pensions will increase next year derives from the revaluation formula agreed upon in the 2021 pension reform.

This formula links the increase in pensions to the twelve-month average inflation, in this case to that of the period December 2022-November 2023, the result of which was 3.8%.

The increase will be effective from January 1, 2024 and will comply with the recommendations of the Toledo Pact to guarantee the purchasing power of pensioners based on the evolution of the CPI.

According to Social Security calculations, in total, more than 10 million pensioners will see their purchasing power preserved or increased next year thanks to this revaluation formula, which will be applied in 2024 for the third consecutive year.

For their part, minimum contributory pensions and non-contributory pensions will increase above the average CPI of 3.8%. Specifically, the former will increase by 6.9% in 2024, except for the minimum pensions for widows with family responsibilities, which will increase by 14.1%.

In addition, non-contributory pensions and the IMV (IMV) will also increase by 6.9% next year.

To improve the equity and adequacy of pensions, the reform approved by the Government in the previous legislature contemplates improvements in 2024 in non-contributory pensions.

These, once revalued in accordance with the CPI, will be increased additionally to reduce the existing gap by 20% until reaching 0.75 of the poverty risk threshold calculated from the Living Conditions Survey of the National Institute of Statistics. (INE) for a single-person household.

Likewise, the minimum amount of the contributory retirement pension for a holder over 65 years of age with a dependent spouse, once revalued based on the CPI, will increase additionally to reduce the existing gap by 20% until reaching 1.5 of the threshold. of risk of poverty.

The objective is for the minimum contributory retirement pension with a dependent spouse to reach at least 16,500 euros per year in 2027 (1,178.5 euros per month for fourteen payments), 22% more than in 2023.

The minimum amount of the widow's pension with family responsibilities, those of contributory pensions with a dependent spouse, except for total permanent disability of those under 60 years of age, will be equal to the amount of the minimum contributory retirement pension for a holder over 65 years old with dependent spouse.

The rest of the minimum amounts of the contributory pensions, once revalued, are additionally increased by a percentage equivalent to 50% of the percentages resulting from the additional increase in the minimum amount of the contributory retirement pension for a holder over 65 years of age with dependent spouse referenced to the indicated poverty risk threshold.

According to the current reform, non-contributory pensions, for their part, will also grow above the average revaluation of pensions, until they converge in 2027 with 75% of the poverty threshold calculated for a single-person household.

With the revaluation of 3.8%, the maximum pension in 2024 will be 3,175.5 euros per month for fourteen payments, compared to 3,059.2 euros in 2023.

The capping of the initial maximum pension will begin to be applied in 2025 and will consist of revaluing the maximum pension with the CPI plus an additional increase of 0.115 percentage points each year until 2050, which will mean an increase of approximately 3% in that period.

The cost of revaluating pensions, estimated for the whole of 2024, is 7.3 billion euros. If the increase in minimum pensions, non-contributory pensions and the IMV is added, this figure rises to 8,280 million.