Why hasn’t my pension been raised? Social Security explains it

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Why haven’t I uploaded the pension? This is one of the questions that thousands of pensioners have asked themselves in the last two days, coinciding with the advance payment of these economic benefits by some banking entities such as CaixaBank, Banco Santander, Unicaja or Bankinter. Well then, to answer this question, the first thing to know is what type of pension is received, that is, if it is contributory or non-contributory.

Precisely in this sense, the Government of Spain included a revaluation of pensions in the General State Budgets, which are reflected in the Royal Decree 1058/2022, of December 27. A 15% for non-contributory, that is, those managed by the Imserso together with the autonomous communities, while for the contributory ones, those managed by Social Security, the increase is estimated for this year at 8.5%. Now, here is the crux of the matter. What personal income tax from the retirement pension? Well then, in 2005 a tax reform came into force that changed the sections of personal income tax, which It meant that I went from seven to fiveas well as changing the retention percentage for each group.

As a consequence, by increasing the amounts from this same month of January, the rent brackets may also have changed that establish the tax burden of each taxpayer based on their income. Likewise, they are also used to calculate the monthly withholdings of each worker or, in this case, if he is a pensioner. Sources consulted to the Social Security press office, explain to this media outlet that “pensioners will have received the increase in the event that their bank has advanced the payment, but the percentage of personal income tax will have been deducted from their pension The rest will do so on February 1, the day on which the effective payment is made by the Public Administrations”.

How to calculate the income tax withholding of my pension?

Personal income tax is divided into income brackets that establish the tax burden of each taxpayer based on their income. They are also used to calculate the monthly withholdings of each worker or, in this case, pensioner. These withholdings must be included in the personal income tax return in order to settle the tax for each group.

When calculating the IRPF of a retirement pension, the personal and family situation must be taken into account, beyond the amount received. This is established in the Article 81 of the Personal Income Tax Regulationin which three groups of vitally important family situations are established when making the income statement.

  • Single, widowed, divorced or legally separated.
  • Spouse with income of less than 1,500 euros per year.
  • Others.

In addition, the Tax Agency offers a simulator in which can be calculated what percentage of income tax must be paid in case of being a pensioner. In any case, the income tax withholding tables for pension retirement are as follows:

  • Up to 12,000 euros: 1%
  • Between 12,000 and 18,000 euros: 2.61%
  • Between 18,000 and 24,000 euros: 8.69%
  • Between 24,000 and 30,000 euros: 11.83%
  • More than 30,000 euros: 15.59%
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