Raising pensions and salaries to officials in 2020 will cost 4,668 million


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MADRIDUpdated:

The increase in pensions and the salary of public employees next year will cost 4.668 million euros for the state coffers, as can be seen from the 2020 budget draft that the Government sent to the European Commission on Tuesday . He 0.9% increase in pensions It will cost 1,404 million euros, since the general increase will entail an expense of 1,263 million, to which another 141 million will be added for passive classes. On the other hand, the 2.3% increase in civil servants salary (2% fixed plus 0.3% of the additional funds) together with the salary equalization of the state security forces and bodies will cost 3,264 million next year.

The salary agreement sealed with the unions collected by 2020 a 2% fixed increase, plus 0.3% of the additional funds, which could be added up to an additional 1% if the GDP increase is 2.5% or higher, which if achieved would raise the cost to 4,575 million. The government's forecasts are that GDP will rise 2.1% next year, so that, if fulfilled, the variable linked to economic growth would be reduced to an additional 0.2%.

In the document, the Government explains that although it is a draft prepared with the restrictions that come with being in office, "there are certain expenditure measures on which there is a general consensus among the main political forces and that they will be carried out in any scenario ". It is" the remuneration increase of public employees and the revaluation of pensions, "he adds.

Regarding the revaluation of pensions, the Government explains that it will be carried out based on the CPI At the end of this year, given the current price trends and forecasts for this last quarter of the year, it will be 0.9%. The document does not detail the increase in the minimum interprofessional salary (SMI) for 2020, nor its impact on the coffers of the State. Another of the expenditure items included for 2020 is derived from the extension of the paternity leave from 8 to 12 weeks and that figure at 336 million.

The Subsidy recovery for over 52 years (with respect to the previous 55) will mean an increase in spending of 400 million euros, but also an increase in revenue from contributions of such benefits of 200 million. Regarding the evolution of social contributions, it is expected that in 2020 they will not register an evolution as dynamic as in 2019, mainly because this year's increase is consolidated but will not generate additional income. In any case, the budget plan foresees a slight slowdown in job creation, compatible with the projected increase in contribution income.

The Government plans to reorganize existing hiring incentives, which could have an annual impact of 500 million euros since 2020, which will have a positive impact on social contributions and the sustainability of the Social Security system.

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