Pension Increases in 2026: What Changes Pensioners Can Expect

In Spain, contributory pensions are updated each year based on the Consumer Price Index (CPI), ensuring that pensioners do not lose purchasing power. The final inflation figure for November confirmed that contributory pensions in 2026 will increase by 2.7%, while minimum and non-contributory pensions will see additional increases above the CPI, following the planned trajectory to bring them closer to the poverty threshold.

This update will affect millions of pensioners and will have direct implications for beneficiaries, as well as for companies and public administrations responsible for payroll and benefits management.

 

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Which pensions are increasing and by how much?

The confirmed increase will affect more than 11 million pensioners: 10.4 million beneficiaries of the general system and around 700,000 from civil service pensions. This adjustment applies to both ordinary pensions and extraordinary payments.

• Average retirement pension: will rise from approximately €1,511 per month to around €1,552, an increase of about €41 per month across 14 payments (around €572 annually).

• Average system pension: will increase from €1,316 to roughly €1,352 per month (an increase of €36 per month).

• Maximum pension: expected to reach around €3,356 per month (an increase of €47,000 annually). For new retirees, a slight additional adjustment will apply, reaching about €3,360 per month.

These amounts are approximate and may vary depending on additional supplements or specific cases.

Minimum and non-contributory pensions: increases above CPI

As part of the policy to protect the most vulnerable groups, minimum and non-contributory pensions will increase above the CPI. This measure aims to reduce the gap with the poverty threshold and will continue on the planned path until 2027.

Additionally, the gender gap supplement will be updated for parents whose careers were affected by childcare, although the final amount has not yet been published.

Implementation deadlines and payments

• The increase will be applied starting with the January 2026 payroll.

• Many financial institutions advance the payment, so some pensioners may receive the updated pension as early as late December 2025.

• Summer and Christmas extraordinary payments will also be increased according to the revaluation.

Summary of key figures

• Reference CPI: 3% YoY

• Contributory pension increase: 2.7%

• Average retirement pension: +€41/month

• Average system pension: +€36/month

• Maximum pension: €3,356/month

• Minimum and non-contributory pensions: increase above CPI

• Implementation: January 2026 payroll, possibly advanced to December 2025

This revaluation ensures pensioners maintain purchasing power and strengthens protection for the most vulnerable, fulfilling commitments from the 2021 reform and the second phase of the Escrivá reform.

Implications for companies and payroll management

This revaluation directly affects payroll and benefits management in companies and administrations. Key actions include:

• Adjusting amounts of pension-related supplements.

• Reviewing calculations for contributions and deductions.

• Updating internal processes to ensure correct and timely payments.

If you need help managing payroll updates, calculating costs, and adjusting labor processes, our Labor Advisory team can assist you in implementing these changes safely and efficiently, avoiding errors and ensuring compliance with current regulations.