Pensions In Spain Will Be Revalued By 0.9% In 2021
The Government is forecasting a 0.9% revaluation in public pensions in 2021, following the increase already applied this year. This would allow for ensuring pensioners’ purchasing power, as it is included in the 2021 Budget Plan which the Executive sent last Thursday to Brussels.
The increase corresponds to the government’s forecast for the GDP deflator, the index closest to the CPI, for next year, which predicts a rise of 0.9%. However, the government must now negotiate this rise with the various political parties and social agents.
The first measure implemented by the coalition government was to revalue pensions by 0.9% as of January 1 for 9.8 million contributory pensions. These include over 655,000 from the passive classes (part of the regime in place for civil servants), 451,156 non-contributory pensions and 195,000 for dependent children with disabilities greater than or equal to 65%, for a total cost of 1.406 billion Euros.
Whatsmore, this is the fourth consecutive year, following 2018, 2019 and 2020, where pensions will increase above the legal minimum foreseen in the pension revaluation index (0.25%). This was implemented for five years and has not yet been revoked. In 2019, pensions were increased by 1.6% in general and by 3% in the case of minimum and non-contributory pensions.
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