Spain raises minimum pensions by 6% and IMV by 9% in 2025

Spain raises minimum pensions by 6% and IMV by 9% in 2025

The Council of Ministers has approved a royal decree-law revaluing more than 12 million pensions for 2025. The general increase will be 2.8%, but contributory minimum pensions will rise by around 6%, and non-contributory pensions and the Ingreso Mínimo Vital (Minimum Vital Income) by 9%. The increase takes effect from January 1. The minimum retirement pension for single-person households is set at €12,241.6 annually, up from €11,552.8 in 2024.

What rises and by how much: the decree's figures

The royal decree-law formalizes the revaluation of pensions under the Social Security system, State Civil Servants Pensions (Clases Pasivas del Estado), and other public benefits. The general increase is 2.8%, but the government sought to boost purchasing power for the lowest benefits. Contributory minimum pensions rise by around 6%, while non-contributory (welfare) pensions and the Ingreso Mínimo Vital increase by 9%. Within minimums, there are exceptions: pensions with dependent spouses and widowhood pensions with family dependents rise by 9.1%. SOVI pensions (pre-1967 social security benefits) are revalued by 6%, reaching €560 monthly for non-concurrent cases and €543.60 for concurrent ones. The gender gap reduction supplement rises by 8.1%, reaching €35.9 per month per child.

Contributions: solidarity levy and MEI

The decree includes changes to contributions approved in pension reforms. From January 2025, the solidarity levy begins, applied to salary portions exceeding the maximum contribution base: 0.92% for salaries closest to the cap, 1% for the middle bracket, and 1.17% for higher wages. Additionally, the Intergenerational Equity Mechanism (MEI) increases by 0.8%, with 0.67% paid by employers and 0.13% by workers. The maximum contribution base is expected to rise by 4% in 2025, approaching €5,000 monthly (€60,000 annually). The maximum contributory pension is set at €3,267.60 monthly across 14 payments.

Worker discontent: "just adjustments"

The measure has generated intense dissatisfaction among contributors. Some participants argue that increases in non-contributory benefits and the IMV discourage work. It is noted that a benefit recipient may receive €560, while a part-time worker earns €519 net for 20 hours or €648 for 25 hours, and that SEPE (Spanish Public Employment Service) contributes on their behalf based on 125% of the SMI (minimum wage), guaranteeing them a higher retirement pension than those who worked. Others point out that minimum pensions have grown 35% more than maximums in relative terms, which they consider excessive. There are also complaints that the private sector faces wage freezes while benefits rise.

System under scrutiny

The debate shifts to the system's sustainability. Critics claim the system will collapse and that the last snowflake will trigger an avalanche. The situation is compared to Peronist Argentina, criticizing the exploitation of employees and self-employed workers to support benefit recipients. It is also noted that the IMV rises by 9% while the SMI will increase by 4%, effectively equalizing both amounts. Some defend that public money belongs to no one and that increases are welcome for the most vulnerable. The discussion ends with an open question: what will make people react?

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Key Data

• General pension increase: 2.8%
• Contributory minimum pensions: around 6%
• Non-contributory pensions and IMV: 9%
• Single-person minimum retirement pension: €12,241.6 annually
• Solidarity levy: 0.92%, 1%, and 1.17% depending on bracket
• MEI: 0.8% (0.67% employer, 0.13% worker)
• Maximum contribution base: will approach €5,000 monthly
• Maximum contributory pension: €3,267.60 monthly in 14 payments