Minimum and non-contributory pensions in Spain will receive an additional statutory increase in 2027, beyond the general adjustment linked to price developments. As a result, the increase in a pension in 2027 could exceed the general rise in the case of certain lower-value benefits.
Contributory pensions, including retirement, permanent disability, survivors’ and orphan’s pensions, are revalued annually according to the average year-on-year change in the Consumer Price Index (CPI) set out in the legislation. This mechanism also applies to the maximum pension.
The general percentage for 2027 is not yet known, as it will depend on inflation. However, the pension reform approved in 2023 established a specific path to improve the lowest amounts, which will culminate that year.
MINIMUM PENSIONS MUST REACH THE THRESHOLD SET BY LAW
From January 1, 2027, the minimum contributory retirement pension for people over 65 with a dependent spouse must reach, once the standard revaluation has been applied, the benchmark set by law based on the poverty threshold for a household made up of two adults.
To calculate it, the legislation uses the poverty threshold for a one-person household from the Living Conditions Survey conducted by the National Statistics Institute (INE), multiplies it by 1.5 and provides for its update through the relevant year.
Therefore, if the standard revaluation is insufficient to reach that benchmark, the additional increase required will be applied.
In 2026, the minimum retirement pension for people over 65 with a dependent spouse amounts to €17,592.40 per year, or €1,256.60 in each of the 14 payments.
Based on the development of the poverty threshold and the mechanism established in the reform, this pension could reach around €1,433 a month in 2027. However, this figure is an estimate, not an official amount, as the final sum will depend on the data needed to apply the formula set out in law.
The improvement also extends to other benefits. The minimum survivors’ pension for beneficiaries with dependent family members and certain pensions for people with a dependent spouse are linked to the benchmark corresponding to the retirement pension for people over 65 with a dependent spouse. Specific rules apply to the remaining minimum pensions, so the percentage increases may differ.
NON-CONTRIBUTORY PENSIONS WILL ALSO RECEIVE AN ADDITIONAL INCREASE
Non-contributory retirement and disability pensions also have a specific improvement mechanism. In this case, the reform establishes 75% of the poverty threshold for a one-person household as the benchmark.
In 2026, their full amount stands at €8,803.20 per year, after increasing by 11.4%.
This development also affects the Minimum Living Income (IMV), whose guaranteed income is linked to non-contributory pensions. For an individual beneficiary, the benchmark amount corresponds to the annual value of these benefits divided into twelve monthly payments, while household units receive the increases established according to their composition.
