Pensions will rise 2.5% in 2022 and this increase will also mark the "pay" of 2021

Pensions will rise 2.5% from January 1, 2022, according to the average of the CPI of the last 12 months and after meeting this Monday the anticipated inflation of November (5.6%). If this data is confirmed on December 15, the day that the final figures will be published, pensions will rise to that extent and will automatically revalue with inflation.

The CPI rises two tenths in November, to 5.6%, its highest in 29 years

The CPI rises two tenths in November, to 5.6%, its highest in 29 years

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In 2022, the new pension revaluation formula agreed by the Government and social agents will be applied for the first time. Annual increases are applied with average inflation data for the previous twelve months (CPI from December to November) instead of inflation forecasts.

Given the CPI data for November, the rise in pensions will finally be higher than expected by the Government in the design of its Budgets for next year. Although the Executive insisted on not giving an estimated figure of increase, since this could change according to inflation (as has happened), the Government had among its forecasts an increase of between 2.2 and 2.3%. However, the soaring inflation in recent months, mainly due to the price of energy, has pushed up the revaluation of pensions a lot.

The rise in pensions affects the 9.8 million contributory, while the minimum and non-contributory will rise more, 3%, according to the law of General State Budgets for 2022, also being processed in the Courts.

Compensation with the "paguilla" of 2021

The 2.5% average inflation of 2021 (from the interannual CPI from December 2020 to November 2021) will not only mark the revaluation of pensions in 2022 but also defines what will be the compensatory "pay" for the annual rise in 2021.

This year the revaluation of pensions was still calculated with an inflation forecast, which was 0.9%. In the absence of the new design for the revaluation of pensions, the Government established that these would be increased with the provision and, if it were finally higher, the so-called "pay" of pensions would be paid to the beneficiaries at the beginning of the following year. .

As the average inflation has been 2.5%, the compensatory pay will be 1.6 percentage points that will be added to the increase of 0.9% approved.

This will be the last compensatory payment that will be paid, since from January 1 the pensions will begin to be revalued by law and based on the average of the CPI of the previous year, and not with respect to an inflation forecast.

The Minister of Inclusion, Social Security and Migrations, José Luis Escrivá, has already calculated that this payment would mean an outlay for Social Security of some 2,000 million euros.


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