Spain has officially published a new law that changes the rules for millions of citizens. Starting in 2026, old-age and disability pensions will increase by 2.7%. This applies both to Social Security payments and pensions for former civil servants. Authorities explain that the increase is tied to inflation, so that seniors do not lose purchasing power.
Special attention is given to those receiving minimum benefits. For them, the increase will be significantly higher—ranging from 7% to 11.4% depending on family circumstances. For example, if a pensioner has a dependent spouse or is receiving a survivor’s pension with children, the increase will be at its maximum. The minimum income for a single recipient will now be €733.6 per month, or €8,803.3 per year.
Other social benefits have also increased. The supplement for reducing the gender gap now stands at €36.9 per month. Families with children will receive more support—for instance, child assistance has risen to €637.92 per year. The maximum pension amount is now capped at €3,359.6 per month.
Changes in contributions
In 2026, employers and employees will pay more into the pension fund. The contribution rate for the Intergenerational Equity Mechanism (MEI) will rise to 0.9%. Of this, 0.75% will be paid by companies and 0.15% by employees. For those earning over €5,101.21 per month, the additional ‘solidarity’ contribution introduced in 2023 will also increase. Its rate will go up each year to maintain the sustainability of the system.
New categories of beneficiaries have appeared. Forest firefighters and environmental inspectors can now retire early through additional contributions. Primary care doctors will retain the right to combine work and pension: they are allowed to receive 65% of their pension while continuing to work.
Extension of social guarantees
The authorities have decided not to cancel key support measures introduced in recent years. Until the end of 2026, there remains a ban on the eviction of vulnerable citizens, as well as on cutting off water, electricity, and gas for low-income families. Landlords are provided with compensation for forced eviction delays.
The social discount on utility payments also remains in place. For most vulnerable families, it is set at 42.5%, while for those in greatest need it reaches 57.5%. Authorities had previously planned to lower these rates, but decided to maintain the existing conditions.
Other updates
The minimum wage will remain unchanged until a new level is approved. Contributions for self-employed workers (autónomos) will also stay the same until a new agreement is reached. Unemployment benefit recipients are now exempt from mandatory tax filing.
In 2026, tax benefits for energy-efficient home renovations, electric vehicle purchases, and installation of charging stations have been extended. Several relief measures introduced after natural disasters and tax exemptions for affected individuals are also being maintained.
Until the new budget is approved, regions and municipalities will receive funding under a temporary scheme. This will help avoid payment delays and support local stability.
Context of the changes
A year ago, similar measures were included in a large-scale bill that failed to pass in parliament. Later, some of the proposals were approved separately. This time, authorities decided to separate transport and pension issues to speed up decision-making and prevent delays in payments.
