If the change in pensionable earnings remained with inflation, the increase would be of the order of 10 to 15 euros in the pension for the same years of insurance.
The committee set up to compile the new Index was strengthened by a decision of the Ministry of Labor, in order to deliver the relevant conclusion by mid-December.
Those who retire by applying for a pension in 2025 will get:
*The national pension estimated that with a 2.5% increase in pensions will be 436.8 euros,
*The compensatory pension that will be calculated according to the years of insurance and based on pensionable earnings from 2002 until the year of retirement.
The change coming is that pensionable earnings until 2023 will have an increase by inflation each year, while from 2024 onwards they will increase by the percentage change in the Wage Index.
The difference in favor of the insured arises from the fact that, as a rule, nominal wage increases are above inflation.
If the wage index shows an average increase of 4.5% in 2024, then pensionable earnings in 2024 will also increase by 4.5%, while with inflation in 2024 they would increase by 3%. Consequently, the compensatory pension will be higher.
Benefits are shown in the table edited and published by the “Insurance and Pensions” insert.
For example:
1. An insured person who is 38 years old this year with a pensionable salary of 2,805 euros will – together with the increase in 2025 – have a pension of 1,730 euros gross. Insured with the same pensionable earnings for 2024 (2,805 euros) who will retire in 2025, with 38 years will have an increase in earnings with the salary index. With a salary index of 4.5%, his pensionable earnings will be 2,931 euros and he will receive a pension of 1,754 euros with an increase of 24 euros per month or 288 euros annually.
* An insured person who is 39 years old this year with a pensionable salary of 2,490 euros will have – together with the increase in 2025 – a pension of 1,650 euros gross. Insured with the same pensionable earnings for 2024 (2,490 euros) who will retire in 2025, with 40 years will have an increase in wages with the salary index to 2,602 euros and will receive a pension of 1,739 euros with an increase of 89 euros per month or 1,068 euros in annual basis.
How will the Wage Index boost pensions?
Wage increases are typically above inflation. This will also have an impact on pensions. The minimum wage, for example, has risen cumulatively over the past three years by 23%, while inflation has risen cumulatively by 16.1%. In the State, salaries increased in 2024 by 7% with inflation in 2023 at 3.5% and projected inflation for 2024 at 2.9%. Since wage increases will be used to increase pensionable earnings, it is mathematically certain that the new pensions will also increase every year.
The increases in the new pensions of 2025 with the wage index
| Pensionable salary in 2024 (1) | Pensionable salary in 2025 (2) | Pension with the same insurance years for 2024 and 2025 | Pension with an additional year of insurance in 2025 | ||||
| Pension with 38 years in 2024 | Pension with 38 years in 2025 | Annual benefit with pension in 2025 | Pension with 40 years in 2025 | ||||
| Annual benefit with pension in 2025 | 1.230 € | 1.285 € | 1.004 € | 1.015 € | 126 € | 1.036 € | 1.080 € |
| 526 € | 1.335 € | 1.395 € | 1.052 € | 1.064 € | 137 € | 1.087 € | 1.135 € |
| 571 € | 1.440 € | 1.505 € | 1.101 € | 1.113 € | 147 € | 1.138 € | 1.190 € |
| 616 € | 1.545 € | 1.615 € | 1.149 € | 1.162 € | 158 € | 1.190 € | 1.245 € |
| 661 € | 1.650 € | 1.724 € | 1.198 € | 1.212 € | 169 € | 1.241 € | 1.300 € |
| 706 € | 1.755 € | 1.834 € | 1.246 € | 1.261 € | 180 € | 1.292 € | 1.354 € |
| 751 € | 1.860 € | 1.944 € | 1.294 € | 1.310 € | 190 € | 1.343 € | 1.409 € |
| 796 € | 2.070 € | 2.163 € | 1.391 € | 1.409 € | 212 € | 1.445 € | 1.519 € |
| 886 € | 2.490 € | 2.602 € | 1.585 € | 1.606 € | 255 € | 1.650 € | 1.739 € |
1.068 €
1.Increase of 3.5% by 2023 inflation. 2. Estimated increase of 4.5% by the Wage Index for 2024.
The 2.5% increase for 2025 has also been calculated in the 2024 pensions.
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