Retirees enjoy some bonuses and extra pay through their pensions. This is especially beneficial for those with lower pensions, as it’s always a bonus they can save to make ends meet instead of spending on leisure activities.
In fact, with the inflationary context that continues to batter Spain, some retirees are saving their extra pay instead of spending it on vacations, to make ends meet. Let’s see what will happen in 2025 with the extra pay and what this extra pay will be that will disappear for retirees.
The Increase in Pensions
The increase in contributory pensions has been 2.8% this year. More than nine million retirees receive this type of pension in Spain and, therefore, enjoy their extra payment twice a year and the corresponding increases that are based on the rise in the CPI.
Since 2022, it has been established that pensions must increase in line with the Consumer Price Index (CPI). This way, the population’s income is aligned with market prices, giving those receiving pensions greater purchasing power. This is stipulated in Article 58 of the General Social Security Law.
Once the inflation data for the entire year is available, the percentage by which retirees’ pensions will increase at the beginning of the year is established. Before this happened, there was an extra payment known as “paguilla ,” which compensated for inflation through extra money given to retirees receiving contributory pensions.
The Extra Pay That Disappears
The extra pay that’s disappearing is none other than this “small allowance” we’re talking about. Once it was established that pensions would rise in line with consumer prices, there’s no longer a need for this extra pay , since the percentage increase more than covers retirees’ financial needs.
And that’s why the percentage increase in pension amounts is so close to the increase in the CPI index. This way, we achieve more equitable amounts to cope with daily life and, also, with the additional expenses that arise.
This year has closed with a lower rate, although rising prices continue to be a problem in our country. This is what has also led to pension increases of slightly less than last year.
Furthermore, not only are pensions being adjusted to bring retirees’ living standards up to par with the rest of the population, but the same is being done with the minimum wage and other aid and benefits. Let’s now look at what happens with the two extra payments received with contributory pensions.
Extra Payments for Retirees
Some retirees may have been alarmed to read that they will no longer receive their bonus in 2025. However, there’s no need to worry, as we’ve clarified, we’re not referring to the bonus payments they receive in the summer and Christmas.
As for these payments, they will continue to be received in June and November, as they are every year. These payments continue to be doubled, as the amount is exactly the same as the one received each month.
This way, and with the increase in pensions this year, retirees will have extra money to save, as some do, or spend on vacations, which is the purpose of these payments.
