The Minister of Social Security relies on the growth of income to defend the revaluation of pensions with the CPI
The Government finalizes in the final stretch of the summer one of the great challenges that it must face in the new course to fulfill its commitments with Brussels. The pension reform is one of the great milestones to be undertaken in the final stretch of the year. And the Minister of Social Security, José Luis Escrivá, announced this Friday that his department will present to the social agents in September “early or as soon as possible” his proposal for one of the most controversial points of the reform: the calculation of the years of contribution.
Currently, this calculation takes into account the last 25 years listed. And the Government analyzes the formula to adapt the norm to what it considers "a new reality of the labor market" in which a good part of the workers no longer earn more in their last years in employment, as happened in the past.
The Government raised at the beginning of the year the possibility of extending to 35 the period that the public system would take into account to calculate the amount of the pension. However, the clash between Escrivá and his partners from United We Can in the Government, as well as the outright refusal of the unions, put aside the possibility of setting any temporary reference in the document sent to Brussels before the summer.
The matter is more than thorny, given the foreseeable clash between the Government and the unions, which are firmly opposed to this possibility. In this sense, Escrivá indicated in an interview in La Sexta that "this is a recommendation of the Toledo Pact and we have several levers on which we can act."
One of them is that extension of the computation period. But the head of the Ministry of Social Security also indicated that, at the same time, "a better treatment of the gaps" can be analyzed. That is, of the years that the worker has not contributed, as well as excluding the worst from the total calculation.
“There are different combinations. 30% of people no longer have those linear careers that existed before, which went from less to more, but since the financial crisis, we have greater volatility and there are people who have their last years not with their best conditions, "he insisted. Write.
Given the rejection that the unions have already shown to the measure, Escrivá indicated that his department's proposal will have an "added benefit", showing confidence in reaching an agreement with the social agents soon.
Revaluation with the CPI
Regarding current pensions, Escrivá has guaranteed that they will be updated in November according to average inflation, as established by law, despite the rise in the CPI throughout the year. The minister recalled that Social Security income is also increasing, with an increase of 8.5% in July in social contributions.
“The balance between income and expenses only reflects an improvement in the situation. It is in a law that was approved in Parliament to give total certainty to pensioners », he stressed.
As with pensions, Escrivá has indicated that the Interprofessional Minimum Wage (SMI) will be updated, a commitment of the Government for this legislature, although he has recalled that it is a matter that concerns the Second Vice President and Minister of Labor, Yolanda Díaz.
Escrivá has specified that the Group of Experts is working to determine what the average salary is in Spain and thus be able to calculate 60% of that figure, which will be the SMI for 2023. However, the minister has stressed that "no figure” and the final decision will be made by the Government after discussion with the social agents.