The Spanish Government will increase minimum pensions by 7% and extend the quotas of self-employed persons by 2026

On Tuesday, the Spanish Government approved a general 2.7% increase in pensions by 2026, as well as an additional increase in minimum pensions, which will increase by more than 7%, while non-contributory pensions and minimum living income amounts will increase by 11.4%.

The Minister for Social Inclusion, Social Security and Migration and Government spokeswoman, Elma Saiz, has announced that the last meeting of the year has also approved, among other measures, the maintenance of social contributions paid by self-employed workers in 2026.

Saiz points out that the quotas will be extended as long as negotiations continue with the collective. In fact, the autonomous group opposed a proposal for an increase for next year and the government rejected it.

All measures shall be included in the same decree, together with the other initiatives of the so-called "social shield".

On the difficulties of pushing through a decree in Congress that includes all the measures, the spokesman asked "what the PP can't like about this package of initiatives." "They seem to be excuses for a bad payer," he asked.

Last year it was not possible to validate the increase in pensions until it was put to the vote alone, not along with other measures, and the PP has put this demand back on the table this year.

With regard to pensions, he recalled that a general revaluation of approximately 2.7 per cent would mean an additional EUR 570 per year for persons with an average retirement pension; and that the latest reform provided for additional increases for minimum and non-contributory pensions paid by around 2.5 million people.

Among the minimum, the percentage shall be higher in the case of pensions with dependent spouse and widows' pensions with family burdens, which shall also be increased by 11.4 per cent.

Old age and disability pensions will increase by 7.07% by 2026, he said.

The 2.7 per cent increase will benefit 9.4 million contributory pensioners and 734,900 pensions under the State Passive Classes Scheme.

Negotiations with the self-employed

With regard to the extension of the self-employed, Saiz has indicated that, in view of the dates, this option has been chosen, but that work will be done to find an agreement.

"We are working throughout the year to reach an agreement," said the minister, who has been willing to "continue to extend the agreement reached in 2022," a milestone, a historic demand that was "endorsed by the social dialogue and the political forces."

The Government, autonomous associations and trade unions shall negotiate annually the updating of the contributions paid by self-employed workers, so that they may contribute in proportion to their actual income.

To this end, as agreed in 2022, they must agree every three years for ten years (ending in 2032) on the sections of contributions and the quotas to be paid, which should now have been agreed for the period 2026-2028, but which has not been possible because there is no agreement.

The Ministry's initial proposal proposed increases of between EUR 11 and 207, which the autonomous associations described as "theft", led the Government to reverse and offer the freezing of the first tranches and monthly increases of between EUR 2.5 and 14.75.

The decree gives the green light to additional contributions so that environmental agents and forest firefighters can anticipate retirement, while at the same time extending by one year the possibility for primary care doctors, family doctors and paediatricians to reconcile retirement pension with work, affecting 1,200 professionals between 2023 and 2025.