Why Social Security can reduce the non-contributory pension

Spanish people or persons residing in Spain who they have not contributed long enough -15 years- to Social Security, can opt for one non-contributory pension (PNC), managed by the Imserso, together with the Autonomous Communities, as long as they meet the requirements for it. While the contributory benefit increased by 8%, it began 2023 with a revaluation of 15%, as approved by the Government of Spain in the new General State Budget. Although, with this increase, the amount becomes 484.61 euros per monththis does not mean that it is always the amount to be received, since it can be reduced in some cases.
With this extraordinary increase, the objective of the Ministry of Inclusion, Social Security and Migrations, led by José Luis Escrivá, is to guarantee the purchasing power of pensioners, depending on the evolution of the CPI. That is why the Executive pension revaluation law establishes that the amount of this benefit It can never be less than 121.15 eurosat least until December 31, 2023.
Another fundamental issue that must be taken into account is that the PNC can be of two types: retirement or disability. In the second case, when the beneficiary has a degree of disability equal to or greater than 75%, and proves the need for another person to be able to carry out the essential activities of his day to day, he will receive the full amount plus the 50% supplement.
What is the amount of the non-contributory pension
After the increase that came into effect in 2023, beneficiaries of non-contributory pensions can receive a maximum full amount of 484.61 euros per monthand of €121.15, As minimum. Thus, the amount varies between the 6,784.54 euros and 1,696.14 euros per year.
But the amount to be collected is not fixedas it may vary depending on the income level. Social Security determines the amount individually, according to the number of beneficiaries who live at the same address and the personal income of the applicant and the members of the coexistence unit. For example, a pensioner who has a annual income of 4,000 eurosyou will be able to access this pension and you will obtain a PNC of 5,159.13 euros per year.
Hence, those who receive this type of pension must present in the first quarter of the year a statement of income of all members of the family unit: if they do not, they run the risk of having their benefit withdrawn. Thus, in case the rents have increased, it is possible to reduce the amount.
Who can request the retirement benefit
Although Social Security has the power to reduce the amount of the non-contributory pension, it is essential to know that it has life character -charged until the death of the applicant- and paid in 12 monthly payments, plus two extraordinary payments per year. But, to be among the beneficiaries, you must meet a series of requirements:
- Not having the right to apply for retirement pension at the contributory level for not meeting the requirements.
- Have 65 or older.
- Lack of incomethat is, having income of less than 6,784.54 euros per year, an amount updated to 2023.
- Reside legally in Spain. This requirement shall be understood to have been fulfilled, when the person has resided in Spain as minimum 10 years and at least two of them must be immediately prior to the application date and have been carried out without interruption.