Follow Spanish immigration and life in Spain news: The pension budget will not be cut, and 70% of pensions will increase as scheduled. On September 25, Prime Minister Rajoy was visiting New York, USA, and could not attend this Wednesday's regular parliamentary meeting. At this meeting, Spanish Minister of Employment Fatima confirmed that the current government will not reduce the pension budget, and most retirees will not have their pensions frozen this year; they will increase as scheduled.
Minister of Employment Fatima stated that pensions are a return to those workers who have contributed to Spanish society, and the government should respect them. Any budget can be cut, but the pension budget cannot be reduced. At the same time, the current government will not freeze pension amounts as the Socialist government did, and pensions will be adjusted according to the cost of living and inflation index. This year, pensions will be increased based on the price index and inflation index to ensure a better quality of life for the elderly.
The Spanish government has raised the retirement age twice in a row, which has caused great distress among older workers. The government's proposal to adjust pensions based on prices is also a form of reassurance to society and one of the few budget increases by the People's Party amidst numerous budget cuts.
Regarding the pension increase, not all retired workers will benefit; the increase only applies to 75% of the general public. Those receiving high pensions, exceeding a certain standard, will not see their pensions increased.
At the same time, the People's Party will reassess the pensions of those who have immigrated abroad but are still receiving pensions in Spain. Although it has not been explicitly stated that these individuals' pensions will be adjusted, the government's dissatisfaction with retirees who receive money from the Spanish government but do not spend it in Spain is evident from the Minister of Employment's attitude. The Minister stated that the pension increase will be adjusted based on individual IRPF. In other words, if you are abroad and not spending in Spain, your IRPF should be higher than those who are spending in Spain, and thus your income tax will naturally be higher.