The CPI data confirms it: contributory and passive class pensions will rise by 2.8% in 2025

The revaluation will mean an additional 600 euros per year (around 42.8 euros per month) for an average retirement pension.

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Contributory pensions will rise by 2.8% in 2025 with 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 fiscal year).

The National Institute of Statistics (INE) has confirmed this Friday that the interannual CPI for November stood at 2.4%, making it possible to determine how much contributory pensions will be revalued in 2025 by taking the average of the previous twelve months. in this case December 2022-November 2023.

The calculation obtained is 2.8%, which means that contributory pensions and those of the passive classes of the State will increase this percentage next year. In 2024, contributory pensions were revalued by 3.8% because average inflation was higher, while in 2023 they were revalued by 8.5%.

600 ADDITIONAL EUROS FOR AN AVERAGE RETIREMENT PENSION

This 2.8% 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 in 2025, the Ministry of Transportation reported this Friday. Inclusion, Social Security and Migrations.

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.

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 are updated each year according to the increase in prices to guarantee their purchasing power, in line with the recommendations of the Pact of Toledo.

The Minister of Social Security, Elma Saiz, has highlighted that this measure “is a guarantee of peace of mind for the 10 million pensioners, men and women who have worked and contributed for decades.”

“Maintaining purchasing power is a right of pensioners and, thanks to it, with the publication of the final CPI data for November we already know the percentage of the increase in contributory pensions for next year,” stressed the minister, who He added that the Government will continue working to strengthen the social protection system.

INCREASE IN THE MAXIMUM BASES AND THE MAXIMUM PENSION

Under the pension reform carried out by José Luis Escrivá when he was Minister of Social Security, in 2024 the annual revaluation of the maximum bases and the complement of the gender gap based on the CPI came into force. In the case of the maximum bases, a fixed amount of 1.2 points is added to the CPI each year of the period 2024-2050.

This means that, by 2025, the maximum contribution base will rise by around 4% (2.8% of the average CPI plus an additional 1.2%), which would place it at 4,909 euros per month.

While the maximum contribution base increases, the maximum pension will increase in 2025 with the CPI plus an additional 0.115%, as determined by the pension reform. In this way, with the revaluation of 2.8% of the CPI plus that additional percentage, the maximum pension in 2025 will be 3,267.5 euros per month for fourteen payments, compared to 3,075.04 euros this year.

Under the pension reform, 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 approximate increase of 3% in that period.

Likewise, the pension reform determines that the gender gap complement (33.2 euros in the current year) will rise an additional 10% to the CPI in the 2024-2025 biennium, which will be distributed between both years at 5%.

In this way, by 2025, the gender gap complement will rise by around 7.8% (the average CPI plus an additional 5%), which will place it at 35.6 euros.

MINIMUM AND NON-CONTRIBUTORY PENSIONS WILL RISE ABOVE THE CPI

To improve the equity and adequacy of pensions, the reform approved by the Government with Escrivá as minister contemplates improvements in non-contributory pensions to equal the minimum poverty threshold. This year, the increase they experienced was 6.9%, above the 3.8% increase in contributory pensions, and in 2025 they will increase more than the average CPI of 2.8%.

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

The Minimum Living Income (IMV) will increase in 2025 in the same way as its amount is referenced to that of non-contributory pensions.

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).

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, will be 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.

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.