Why will pensioners not collect the January pay in 2023?


For years now, January has always been a remarkable month for pensionerswhich for a year now have not received the so-called pension pay. The reason is none other than the change promoted by the Ministry of Inclusion, Social Security and Migrations, chaired by Jose Luis Escrivaas a result of the first pension reform, under the Law 21/2021, of December 28, to guarantee the purchasing power of pensions. Precisely in this sense, it is important to underline that the negotiation of the second pension reform is already being forged within the Spanish Government, with the aim of reaching an agreement in January.

Among the measures that are sought to be adopted, the gradual uncapping of the maximum contribution bases, that is, of the contributions of the highest salaries to the Social Security system, between 2025 and 2050. In addition, among the battery of measures, it is also contemplated to reduce the gender gap in pensions, which would be added to the complement that entered into force in February of last year. Having said this, with the previous pension revaluation systemwhich was applied from 2018 to 2021, at the beginning of each of these years the pensions were revalued according to the Consumer Price Index (CPI), in order to offset the expenses of the following year thanks to this compensatory aid.

Before 2018, an annual pension revaluation of 0.25% had been applied. It was at the beginning of last year, in January 2022, when the new revaluation formulaalready in force in 2023, which uses the period between December 2021 and November 2022 to update benefits.

When are the 2022 pension arrears paid?

By linking the increase in pensions to the increase in the CPI, the compensatory payment for price deviation disappears. This is due to the fact that when pensions are revalued based on closed real inflation data, and not based on estimates, a system to compensate differences is no longer necessary. However, this does not mean that these benefits will not increase, whether they are contributory, led by Social Security, or non-contributory, that is, those managed by the IMSERSO together with the autonomous communities.

How much will non-contributory pensions rise in 2023

The minimum pensions or, what is the same, non-contributory, They are the ones that rise the most in 2023. Specifically, they do so by up to 15%, which will mean an increase of about 70 euros per month. The objective of this increase, according to the Executive of Pedro Sánchez, is to combat the inflation rate, which in December moderated below 6%. However, last summer it exceeded two figures, reaching 10.4% in August 2022. However, the Government already raised these benefits by 15% in June, under the Royal Decree 11/2022, of June 25as an extraordinary measure to alleviate the economic effects of the Russian invasion of Ukraine.

Therefore, if in 2022 Social Security ensured a minimum amount of 421.40 euros, from this month of January, 484.61 euros will be charged or, what is the same, 63.21 euros more per month. In any case, the basic amounts will be set as follows:

  • Full: from 457.22 euros per month in 2022 to 525.80.
  • Minimum of 25%: from 114.30 euros per month to 131.44.
  • Full plus the 50% increase: from 685.83 euros per month to 788.70.

On the other hand, the Public Administration emphasizes that if two or more recipients of this non-contributory modality live within the same family unit, the individual amount for each of them will be the following as of 2023:

  • If there are two cohabitants: from 388.63 euros per month to 446.92.
  • If there are three cohabitants: from 365.77 euros per month to 420.63

How much will contributory pensions increase in 2023

The Social Security pensionsin its modality contributory, and Passive Class pensions, including the amount of the minimum pension, will be revalued by 8.5% by 2023, which is the average inflation of the previous year. The minimum pension for pensioners aged 65 or older, it is set at 10,963.40 euros per year and 13,526.80 in the case of retirees with a dependent spouse.

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