Pension update in 2022

The pension update in 2022 is effective as of January 1. Contributory pensions will be revalued by 2.5% for the year 2022. This increase is the result of the average consumer price index (CPI) between December 2020 and November 2021, in accordance with the formula agreed with the social agents last July, which guarantees the purchasing power of pensioners. This increase will be the same for Passive Class pensioners.

However, minimum pensions, non-contributory pensions, pensions for dependent children and the Minimum Vital Income will experience a higher increase, which will be 3%.

Pension update in 2022

But first, the Government will have to carry out an increase in pensions in 2021 by means of an extra income with which it will adjust the 0.9% increase it determined at the beginning of the year, and which, in the end, has fallen far short of the final 2.5% (1.6% increase). This increase, which will be paid through what is known as “la paguilla”, will be paid into pensioners’ paychecks in the second part of January. And it will happen for the last time, since from 2022 it will be linked to the average of the previous year.

In total, adding the two effects, pensions will rise by 4.1% in 2022.