Escrivá will present to unions and employers this afternoon its proposal to increase the maximum contributions and extend the period of years to calculate the pension
The Ministry of Social Security resumed negotiations this afternoon on the second phase of the pension reform after a long break of more than two months due to a lack of convergence between the different positions of the social partners on the one hand and the elections held last week on the other. held in the CEOE. With Antonio Garamendi re-elected as head of the businessmen for a second term, Minister José Luis Escrivá has called on trade unions and employers to come to the table of social dialogue, although the agreement seems more than difficult.
The last time they met was on September 12, but the ministry assures that they have maintained bilateral contacts with both organizations at all times. However, both the CEOE and the unions have openly criticized Escrivá’s negotiating style, accusing them of launching trial balloons without presenting a formal proposal to social agents.
And that is what is expected of today’s meeting: a written document specifying the two measures to be completed before the end of the year: the increase of the maximum contribution bases and the extension of the retirement period. In addition, it remains to be seen whether an amendment to the recently approved intergenerational justice mechanism (MEI) will also be included, given that it does not convince the European Commission. That is why it is being considered to extend the 0.6% contribution increase starting in 2023 and ending in 2032 until 2050, with the aim of filling the pension savings for the retirement of the baby boom.
No major surprises are expected and it is expected that the maximum bases will be increased by 30% over the next 30 years, which would entail a similar increase in the maximum pension, although it will be some time yet. take much longer to take effect because the beneficiaries must have contributed to that premium for a large part of their careers. This increase in the contributions of the highest-earning employees is in addition to inflation, so an automatic rule is put in place whereby these contributions increase by almost 1% each year, in addition to the increase in the CPI.
It is Escrivá’s intention that after those 30 years the salary for which the highest paid employees are quoted will increase to 65,000 euros per year, compared to the current 49,600 euros. Above this amount, social security is not paid, so there is some 35 billion euros in wage bills that do not contribute to the system, according to estimates by the ministry.
The other metric Escrivá will reveal is how many years it plans to extend the pension calculation period and how many years it will allow to throw away. It is expected that it will be no more than the last 30 years that he proposes, compared to the current 25.
This measure is strongly opposed by the unions and much of the parliamentary arc, so it is expected to have a neutral effect on new retirees and perhaps even benefit those with interrupted careers.
Source: La Verdad
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