The Minister of Social Security, José Luis Escrivá, wants non-contributory pensions to rise by 15%. This will be reflected in the next decree law in response to the war in Ukraine. This increase in pensions is part of an agreement between the Government and Bildu and the intention is that it be maintained until December 31, 2022.
Once put on the table, up to 445,069 people will benefit from this measure and it will cost 205 million euros if it starts in July. And those who will be affected by the rise will see their pension increase between 63 and 94 euros, depending on the pension received.
Non-contributory pensions are intended for people who have not contributed long enough to access a contributory pension. It remains therefore to distinguish between two types of non-contributory pensions: retirement and disability.
To receive the non-contributory retirement pension, a minimum of ten years of residence in Spain is required from the age of 16. In addition, your annual income cannot exceed 5,899.60 euros. Up to 180,000 people benefit from this type of benefit, the amount of which is 461 euros per month. With the rise of 15%, these pensions would go to 530 euros per month.
In the case of disability pensions, received by 264,000 pensioners, they are granted to citizens whose age is between 18 and the legal retirement age and who have 65% disability. The economic income limit is the same as for retirement, except that it is only necessary to prove a minimum of 5 years as a resident in Spain. Currently, the average pay for these taxpayers is 427 euros per month, rising to 491 with the 15% increase.
[The public pension fund was born with 50% less tax incentives for the self-employed than salaried workers]
Minister Escrivá has defended that it is “reasonable” that some 400,000 people have this increase in their pension, as is already the case with the beneficiaries of the Minimum Vital Income (IMV).
“In the face of these old strategies of generalized tax cuts, which no one in the world is defending, it is clear that there is a consensus to protect the most vulnerable, the most affected,” the minister explained.
