The cost of revaluing pensions by 8.5% will exceed 12,700 million euros

Contributory pensions will rise by around 8.5% in 2023 with the revaluation formula included in the pension reform law, which takes into account, as a reference to determine the increase in these benefits, the average interannual CPI twelve months (from December of the previous year to November of the current year).

The National Institute of Statistics (INE) has published this Tuesday the advance data of the CPI for November, with which it is possible to anticipate how much contributory pensions will revalue in 2023 by taking the average of the previous twelve months, in this case December 2021-November of 2022.

The calculation obtained is, rounding, 8.5%, with which the contributory pensions, as well as the Minimum Vital Income (IMV), will rise next year around said percentage.

For their part, non-contributory pensions will maintain for next year the 15% increase that was applied to them last July by virtue of an amendment agreed upon by the Government with Bildu in the framework of budget negotiations.

The 2023 General State Budget (PGE), recently approved by Congress, did not contemplate the specific figure by which contributory pensions will rise next year because the inflation data to which their revaluation is linked was unknown, although the Government calculated that It was going to be at 8.5%, tenths up or down, as it has been.

In any case, we will have to wait for the final CPI data for November, which the INE will publish on December 14, to confirm the exact percentage increase in pensions for 2022, although the final CPI data tends to hardly vary. if any tenth.

According to the INE, the interannual CPI for November stood at 6.8%, according to its initial estimate.

INCREASING PENSIONS WILL COST MORE THAN 12,700 MILLION EUROS

Social Security calculates that each tenth increase in pensions has a cost of about 150 million euros, so raising them by 8.5% will imply an expense of approximately 12,750 million euros.

The Bank of Spain, for its part, estimates that each tenth of an increase implies a cost of 180 million euros. Using these estimates, the cost of raising pensions by 8.5% would be around 15.3 billion euros.