By Laura Kemp •
Published: 15 Dec 2021 • 14:30
As stated in the new pension law being processed by Parliament, pensions in Spain will rise by 2.5 per cent in 2022, which is the inflation registered between December 2020 and November of this year.
Spain returns to the costly formula for the economy of linking incomes and prices, a modus operandi that was applied in the 1990s and replaced by the Revaluation Index in the 2013 reform which, until 2018, linked the increases in payroll to the health of the Social Security with increases of 0.25 per cent.
In previous years, the interannual inflation registered in November served to adjust the rise applied in January so that pensioners did not lose purchasing power. The cost generated by these revaluations, derived from the deviations of inflation with respect to the initial forecasts, caused high additional invoices for the system in the past which led to the change in the calculation method detached from prices.
Now, these are once again the reference at a time when the system accumulates a deficit and a historical debt.
With the 2.5 per cent increase, the average retirement pension – which is €1,195 – will increase by about €30 per month (420 per year) and the “pay” that the retiree will receive in a single payment at the beginning of the year to compensate for the deviation in prices will be €268.
The maximum pension of the system will be revalued to €2,775.17 per month, while the minimum pensions will increase by 3 per cent and their amounts in each of the assumptions will be the following:
– Retirement for 65 and over: with a dependent spouse you will receive €876.53 per month; Without a spouse €710.34, while with a non-dependent spouse it will be €674.24.
– Retirement for people under 65: with a dependent spouse will be €821.84 per month and €628.2 free of charge. For those who do not have a spouse, the amount will be €664.66.
– Widowhood pensions: with family charges, the pension will be €821.84; for people over 65 years of age or with a disability greater than 65 per cent it will be €710.39 and for people between 60 and 64 years old it will be €673.93. For those under 60 years of age without charges, it will be €538.18.
– Orphan’s pension: the general will be €217.12. For those under 18 years of age with a disability equal to or greater than 65 per cent, it will be €427.14. For cases of absolute orphanhood, the amount will be €755.3.
– Pensions in favour of relatives: per beneficiary will be €217.12 per month; a single beneficiary with 65 years will be €524.68 and a single beneficiary under 65 years €594.50.
– Highly valid permanent disability: with a dependent spouse it will be €1,314.8; Without a spouse €1,065.64 and with a non-dependent spouse €1,011.36.
– Absolute or total disability of holders over 65 years of age or over: with a dependent spouse it will be €876.53, €710.39 without a spouse and €674.24 with a non-dependent spouse.
– Total disability of holders between 60 and 64 years old: €821.84 with a dependent spouse, without a spouse €664.66 and with a non-dependent spouse €628.2.
– Disability due to illness in persons under 60 years of age: €523.76 with a dependent spouse, €519.12 without a spouse and with a non-dependent spouse €523.76.
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Originally from UK, Laura is based in Axarquia and is a writer for the Euro Weekly News covering news and features.
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