More than three million people set to benefit from 30% increase in their pensions

More than three million people in Spain will benefit from a 30% increase to their pensions over the next four years due to the pension reform which was approved by Congress last week. The new set of measures drawn up by Minister José Luis Escrivá included an increase in minimum and general pensions higher than the annual inflation rate.

It will affect more than 2.16 million people with minimum supplements, of which almost one million were retirees and more than 600,000 were widows, the majority of who are women, according to Ministry of Social Security figures.

The minimum contributory retirement pensions with a dependent spouse could not be lower than the poverty threshold calculated for a household composed of two adults. That same threshold applied to widows' pensions with family responsibilities, and the rest of the contributory pensions with a dependent spouse, except for those with a total permanent disability whose holders were under 60 years old.

This would result in a rise of 2% in addition to inflation each year until it reached a minimum of 16,511 euros per year in 2027, according to the Ministry of Social Security.

The retirement benefit for the over 65s with a dependent spouse would rise from 13,527 euros gross per year to 16,500 euros in 2027.

But the increase would be greater for widows with family responsibilities or retirees with a dependent spouse under 65 years of age, or beneficiaries of a permanent disability with a dependent spouse between 60 and 64 years of age, who would go from receiving 12,683 euros this year to 16,511 euros in 2027.

The non-contributory pensions currently paid to 445,000 people will also be increased each year above the CPI but to a minimum of 75% of the poverty threshold for a single-person household. The minister estimated they would rise by 22% from the current 6,785 euros per year to 8,256 euros gross in 2027.

The 452,000 retired women who received a supplement for having been mothers, would also enjoy a bonus of 42.50 euros for each child they have. This supplement, aimed at reducing the gender gap, will increase by 10% in 2024 and 2025, according to the new law.