The Council of Ministers approves the revaluation of contributory pensions according to the average CPI, which was 2.5% in 2021
The Council of Ministers has given the green light this Tuesday to the revaluation of the pensions by 2022, already included in the State’s general budgets. The increase will come into force for the purposes of the January 1, 2022 and pensioners will already enter their benefit in this month’s payroll with the updated tables. The increase for contributory pensions, the most frequent among the group of pensioners and who currently receive 9.87 million people, will rise 2.5%, a figure that is the result of the average evolution of the IPC during 2021.
Specifically, the formula that the Minister of Inclusion and Social Security, José Luís Escrivá, agreed with employers and unions was to calculate the average inflation between November 2020 and November 2021. What has ended up being 2.5%. In other words, the average retirement pension in December was 1,196.2 euros and this January it will rise to 1,245.9 euros, about 49,7 euros average increase. All contributory widowhood, temporary disability or orphan pensions will also rise in the same proportion.
The revaluation of pensions based on the average CPI of the previous year is a novelty for the following year that the Government and social agents have agreed. For 2021, the inherited regulations continue to prevail. Pensions rose 0.9% at the beginning of the year, according to the expected inflation for this year. Once the average inflation for twelve months until November is known, pensioners will be compensated this January for the difference between that 0.9% and the 2.5% at the end of the year. The final amount of that ‘paguilla’ will depend, consequently, on what the pensioner usually charges and can be around between 220 and 340 euros, while for widows it will be 166 euros.
Minimum pensions will rise 3%
Two other novelties introduced by this year’s Budgets are the payment of a supplement to alleviate the gender gap. This was previously a variable on the amount of the pension based on the number of children. Now it is an ‘extra’ of 28 euros per month for each of the children and will be received by the spouse with the lowest pension.