In 2023 there will be no 'paguilla' of pensions: how much will the contributory and non-contributory ones go up?

MADRID, 11 Oct. (EDITIONS) -

In 2023, the well-known 'January payment' of pensions will not be collected, an extraordinary payment received by pensioners to offset the loss of purchasing power due to the difference between the real average annual increase in the Consumer Price Index (CPI) and the Government's forecast on the evolution of that indicator, the latter value with which the amounts were actually updated.

In January of this year was the last time that this figure was applied to adjust this difference between the official forecasts and the real increase in the cost of living.

Thus, in 2023 contributory and non-contributory pensions will be updated based on the average value of the interannual percentage increases in the CPI between December 2021 and November 2022.

According to calculations by the Ministry of Finance, this increase will be around 8.5%, a percentage increase that would apply to both contributory and non-contributory pensions.

In this sense, the average retirement pension in Spain stood at 1,256 euros per month in September this year, so with an increase of 8.5% the average amount would rise to 1,363.74 euros.

The amount of non-contributory pensions was set for 2022 at 5,899.6 euros per year (421.4 euros per month in 14 payments), so that, after applying the 8.5% increase, in 2023 the amount would rise to 6,401 euros, that is, 457.21 euros per month.

However, it must be taken into account that since last July a transitory increase has been applied --until December 31, 2022-- on the amount set for non-contributory pensions for 2022 of 15%, a measure adopted in the framework initiatives to mitigate the effects of the war in Ukraine.

This means that since last July and until the end of the year the monthly amount of non-contributory pensions has gone from 421.4 euros per month to 484.5 euros per month.

It remains to be seen whether in November the Executive extends the transitory rise in contributory pensions or not and, if so, by what percentage.