July 6, 2020

Sanchez’s pension increase will only be 9 euros per month

Those with minimum pensions will receive less than seven euros. The cost for the state coffers will exceed 1,400 million

Confirmed. The first draft decision made by the Pedro Sánchez Executive has been to increase pensions by 0.9%. the measure will be taken through a law decree processed urgently so that the revaluation is effective for the next monthor, although for bureaucratic reasons the increase will not be reflected in the payroll until March 1. The part that has not been paid will be subsequently completed in a single payment retroactively.

This 0.9% increase is what was foreseen in the Budget Plan sent to the European Commission and could not be approved in 2019 by the interim government of Pedro Sánchez. But the proposal will not be the panacea that solves the economic problems of many pensioners. The measure approved by the Council of Ministers will mean only a few euros in the monthly benefit. If we stick to the Social Security data, the average pension in Spain is currently 993 euros, so the increase will be just 8.93 euros per month. In the case of retirement benefits, the average is 1,140 euros, which will increase to just 10.26 euros per month.

Less luck will have those who receive a minimum pension with a dependent spouse. At the end of each month they will barely charge 843.3 euros – in front of the current 835.6 euros – 7.7 euros more per month. Nor will those that are single-person without a spouse improve much, since if they receive 677.4 euros they will charge 683.49 euros, that is, just 6.9 euros more.

Sanchez, in his speech after the Council, stressed the Government will compensate pensioners if the CPI exceeds the current 0.9% this year, and will do so in a single payment that will occur before April next year. The cost of these revaluations – according to the Executive estimates – will be 1,404 million euros.


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