The Government undertakes to increase contributory and non-contributory pensions according to what the CPI rises this year
The minimum pensions and the minimum vital income (IMV) will rise next year depending on what the closing of the CPI This exercise. Which, according to the Government’s preliminary calculations, will be a figure close to 8.5%. This is established in the yellow book that includes the preliminary draft of State’s general budgets for 2023, which contemplates a total expenditure of 204,208 million euros during the next year to pay for the public pension system and all those transfers linked to Social Security. This represents around 4 out of every 10 euros managed from the central State and an increase of 12.8% compared to 2022.
Currently the minimum non-contributory pension is 421.4 euros per month and next year it will rise depending on how the CPI closes the year. Applying the approximation of 8.5% provided by the Government, this transfer would remain in 2023 in the €457.2, that is, it would rise by about 35 euros from January 1, 2023. In Spain there are around 428,000 people receiving some type of non-contributory pension -whether it is minimum or due to disability-. On the other side of the scale, the maximum contributory pension will rise to €3,059.2 a month.
In the case of the IMV, the amounts to be received depend on the composition of the family unit. Taking as a reference an adult who lives alone and has no family charges, in 2022 he is earning 491.63 euros per month. If the revaluation of 8.5% is applied, he would receive 41.8 euros more, up to a total of €533.4. This state minimum income reaches a total of 1.2 million people (living in 461,000 households).
The specific figure for the increase in pensions and the minimum vital income (IMV) will be known definitively next December 14thwhich is when the National Statistics Institute (INE) is expected to publish the consolidated CPI data for November. Then, by calculating the average of the CPI of the last 12 months (December 2021-November 2022), it will be possible to obtain the definitive increase in pensions.
budget balance
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The intense rise in prices that the Spanish economy has been suffering for months will require an unprecedented effort from Social Security to meet its commitments. According to the calculations included in the Budgets, Social Security expenses will increase next year by 12.8%, to 204,208 million euros. However, all this increase in spending may be covered with the increase in income foreseen for the treasury coffers, both through new contributions and through direct transfers from the State.
At the level of social contributions, for example, which are those collected directly from active workers, income increases the 11.5% next year. “Thanks to the higher social contributions and the current framework of economic growth,” according to the treasury. Three tenths above (11.2%) the increase in spending on contributory pensions, which accounts for the current viability of the system.