The revaluation of contributory pensions for 2027 will be calculated using the average year-on-year CPI from December 2025 to November 2026. The increase will be applied in January and will benefit over ten million people.
Contributory pensions in Spain will rise in January 2027 based on the average inflation recorded between December 2025 and November 2026. The CPI figure for November, published by the INE in mid-December, will be the last to be included in the calculation. The increase will affect more than ten million pensioners, as reported by lideractual.es.
Law 21/2021 on guaranteeing purchasing power establishes the mechanism: the year-on-year CPI rates for those twelve months are summed and the result is divided by twelve. The exact percentage is not decided in advance. If the average is negative, pensions are frozen, but never cut.
The available data indicates an increase greater than that of 2026. In 2026, contributory pensions rose by around 2.7%, approximately 572 euros more per year for the average retirement pension. For 2027, Funcas and the European Commission estimate an annual average CPI in 2026 of 3.2%, while the Bank of Spain raises it to 3.6%.
The inflation spike has a specific origin: the CPI rose by 0.7 points in just one month due to the rising costs of oil and fuels caused by the conflict in the Middle East. Official forecasts differ, but all exceed the 2.7% of 2026, indicating a greater revaluation for 2027.
The new system replaced the previous one, which linked increases to government forecasts and was adjusted afterwards with the so-called January payment. Since the law came into effect, the annual increase depends on the year-on-year average CPI, not on the inflation of a specific month.
Minimum benefits, non-contributory pensions, and the Minimum Vital Income have higher increases to strengthen the purchasing power of households with lower incomes. The increase will be applied in the January 2027 payroll, once the definitive CPI figure for November 2026 is published.
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