The Government will revalue the contributory benefits according to the average CPI of 2022
The National Institute of Statistics (INE) has published this Wednesday the definitive data of the CPI for the month of November, which remains at 6.8% and marks the increase experienced by the pensions starting next year. Contributory benefits -by law- and non-contributory ones -by decision of the Government- will rise by 8.5% from January 1, 2023. More than 10 million people will benefit from this revaluation, introduced in the last pension reform approved in 2021.
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The current legislation establishes that pensions will be revalued each year based on the average of the interannual variation data of the CPI between December of the previous year and November of the present. And from the resulting calculation comes the definitive data according to which the pensions will rise the following year. The previous year, for example, the average between December 2020 and November 2021 was 2.5% and thus pensions rose from January 1 of this year.
The 8.5% revaluation of pensions for next year will cost approximately 13,700 million additional euros for the Social Security coffers. In other words, if the average retirement pension is currently 1,141.63 euros (according to the October payroll), as of January it will rise to €1,238.7about 97 euros average increase.