The average retirement pension will increase by 734 euros per year or 52 euros per month with the 3.8% revaluation that contributory pensions will experience in 2024, the Ministry of Inclusion, Social Security and Migration reported this Thursday.

For its part, the system’s average pension, of 1,200 euros per month, will increase by 638 euros per year, which is 46 euros more per month.

After the publication of the final CPI for the month of November, the Department led by Elma Saiz has once again confirmed that contributory pensions will rise by 3.8% in 2024 as a result of the revaluation formula agreed 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 has been 3.8%.

The increase will be effective from January 1 and with it, the Ministry highlights, the recommendations of the Toledo Pact to guarantee the purchasing power of pensioners based on the evolution of the CPI are fulfilled.

According to Social Security, in total, more than 10 million pensioners will see their purchasing power preserved or increased.

“Thanks to the pension reform approved in 2021, with the contribution of social agents and political parties that voted in favor, for the third consecutive year the Government of Spain protects the purchasing power of our pensioners,” Minister Saiz highlighted. it’s a statement.

For their part, minimum contributory pensions and non-contributory pensions will increase above the average CPI of 3.8%.

“The great news is that the pensions that increase the most are the lowest, which correspond to people with the lowest income and that it has a direct effect on reducing the gender gap, one of our essential objectives,” said Saiz.

In fact, the minister indicated this week that minimum pensions will rise in 2024 between 5% and 7%, except for widows with family responsibilities, which will increase by 14.1%, while non-contributory pensions and the Minimum Income Vital (IMV) will increase by 6.9%.

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 now.

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.

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.

In 2024, the annual revaluation of the maximum bases and the complement of the gender gap based on the CPI will come into force. In the case of the maximum bases, a fixed amount of 1.2 points will be added to the CPI each year of the period 2024-2050.

This means that, for next year, the maximum contribution base will rise by around 5% (3.8% of the average CPI plus an additional 1.2%), which would place it at around 4,720 euros per month.

Likewise, the pension reform determines that the gender gap complement (30.4 euros in the current year) will rise an additional 10% in the 2024-2025 biennium, which will be distributed between both years as determined by the respective Budget Laws. Generals of the State.

According to the Government’s Budget Plan sent to Brussels, the increase in the maximum base in 2024 will imply income of more than 308.5 million euros.

The Government will evaluate the increase in the maximum contribution bases every five years within the framework of social dialogue and will send a report to the Toledo Pact Commission.

At the same time as the maximum contribution base increases, the maximum pension will increase in 2024 with the CPI (from 2025 it will do so with the CPI plus an additional 0.115%).

In this way, with the 3.8% revaluation of the CPI, the maximum pension in 2024 will be 3,175.5 euros per month for fourteen payments, compared to 3,059.2 euros this year.

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.