The Council of Ministers approved this Friday the revaluation of pensions by 0.25% for 2018, the legal minimum provided, and the increase by 4% of the minimum interprofessional salary (SMI), from 707.6 euros per month to 735.9 euros a month.
The increase in pensions by 0.25% is the legal minimum established in the revaluation formula introduced in the last pension reform, which takes into account the expenses and income of the system and establishes a minimum increase of 0.25% and a maximum ceiling of CPI plus 0.50%.
This is the fifth consecutive year in which pensions have increased by 0.25%. With this increase, the maximum pension will be 2,580.1 euros per month as of January 1, compared to 2,573.7 euros last year.
The Social Security forecasts are that the increase will affect 9,584,189 contributory pensions, 454,960 non-contributory pensions and 194,874 family benefits. Of the total contributory pensions that will be revalued this January 1, 6 out of 10 are retirement pensions. The total cost of the revaluation for 2018 reaches 297.32 million euros.
As for those corresponding to passive classes, there are 633,415 pensions with a total revaluation cost that reaches 35.05 million euros.
In the same way, the decree establishes the revaluation of 0.25% of the minimum amounts of pensions for passive classes and of the Social Security system in its contributory modality, of non-contributory pensions and of non-concurrent pensions of the extinct Mandatory Insurance of Old Age and Disability.
In addition, the amounts of allowances for children with disabilities aged 18 or over are updated. The revaluation of pensions derived from work accidents and occupational diseases is also regulated; of extraordinary pensions derived from acts of terrorism; of pensions recognized in application of international standards; the rules on pension contributions and the financing and management of revaluation.
How are the pensions?
After the 0.25% increase that pensions will experience on January 1, the minimum retirement pension for a person aged 65 or over with a dependent spouse will go from 786.86 euros per month for fourteen payments to 788.9 euros per month.
Those who do not have a spouse will receive a minimum of 639.3 euros, compared to 637.7 euros this year, while those who have a spouse but not dependent will receive 606.7 euros per month (now it is 605 euros).
The minimum retirement pensions for those under 65 with a dependent spouse will rise from 737.5 euros per month for fourteen payments to 739.5 euros, and those for those under 65 without a spouse will rise to 598 euros, compared to the 596.5 euros per month this year.
For its part, the minimum pension for widows with family responsibilities will be 739.5 euros per month for fourteen payments from January 1, in contrast to the current 737.5 euros.
The minimum amount of the widow's pension for holders aged 65 or with a disability equal to or greater than 65% will be 639.3 euros per month (now 637.7 euros per month), while the minimum widow's pensions for people with between 60 and 64 years it will be 598 euros per month. For widow's pension holders under 60 years of age, the minimum amount will reach 484.2 euros per month in 2018 (previously 482.8 euros).
Likewise, the minimum pension for severely disabled people with a dependent spouse will go from 1,180.34 euros per month for fourteen payments to 1,183.4 euros per month, while that for severely disabled people without a spouse will rise to 959 euros from 956.6 euros per month. this year.
The minimum absolute permanent disability pension will rise from next January 1 to 788.9 euros per month for fourteen payments, compared to the current 786.86 euros, while orphanhood pensions and pensions for family members will have a minimum amount of 195.3 euros per month, in contrast to 194.8 euros now.
For its part, the amount of the maximum pension will go from 2,573.7 euros per month to 2,580.1 euros per month.
SMI rise
In addition to the Royal Decree on the revaluation of pensions, the Government has approved another Royal Decree with the increase of 4% of the interprofessional minimum wage for 2018.
This increase, the result of the agreement with unions and employers, will place the SMI at 735.9 euros per month for fourteen payments or, in other words, at 10,302.6 euros per year. The SMI rose 8% last year after the Government agreed with the PSOE.
The Royal Decree also regulates the SMI for casual and temporary workers whose services to the same company do not exceed 120 days, which is set at 34.85 euros per day. Likewise, for domestic employees who work hourly, on an external basis, the SMI will be 5.76 euros per effective hour worked.
For the next three years, the Executive has negotiated with the social agents a progressive increase in the minimum wage: a 4% in 2018 (up to 735.9 euros/month), a 5% in 2019 (773 euros/month) and a 10% in 2020 (850 euros/month).
However, the increases in 2019 and 2020 are conditional on the Spanish economy growing, in real terms, by 2.5% annually or more and on the average Social Security affiliation increasing above 450,000 people.
In the event of non-compliance with these conditions, and therefore the terms of the agreement do not automatically materialize, the Government will open a new negotiation process with the social partners.
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