Law to guarantee the purchasing power of pensions and other measures to reinforce the financial and social sustainability of the public pension system.

The new regulation establishes a stable framework for the revaluation of pensions.

According to it, on January 1 of each year, pensions will be increased in accordance with the average annual inflation recorded in the previous year.

In 2022, the increase will be 2.5% for contributory pensions.

In the event of a year of negative CPI, the amount of pensions will remain unchanged.

With this new mechanism, the 2nd recommendation of the Toledo Pact is complied with, guaranteeing the maintenance of the purchasing power of pensions, and the formula introduced in 2013, whose application had been suspended since 2018, is definitively corrected.

Additional information:

https://revista.seg-social.es/-/las-cortes-generales-aprueban-la-ley-que-garantiza-el-poder-adquisitivo-de-las-pensiones