The compensation to the pensioners for the deviation of the CPI cost 386 million - The Province

The compensation to the pensioners for the deviation of the CPI cost 386 million - The Province

TheSecretary of State for Social Security, Octavio Granado, explained that each tenth of deviation of prices with respect to the rise in pensions this year (1.6%) will entail a cost of 128.6 million euros in compensation to pensioners.

During his attendance at the 'Europa Press Information Breakfasts' to attend the intervention of theMinister of Labor, Magdalena Valerio,Granado has confirmed that to calculate this compensation this year will be taken as reference the inter-annual CPI for December, which the Government expects to end at 1.9%.

This would suppose adeviation of three tenths on the rise of pensions this year, of 1.6%,so that compensatory pay to pensioners will cost about 386 million euros, a result of multiplying by three the 128.6 million that costs every tenth of deviation on the CPI.

In case the price deviation is consolidated in thepayroll of pensions,an issue that is still not entirely clear, these 386 million euros would double and the total cost of compensation would be around 772 million euros.

Of these 772 million, half would be used to compensate pensioners for the price deviation (that is, what is known as the "paguilla") and the rest to consolidate the deviation of the CPI on the payroll.

Real income contribution system for self-employed

On the other hand, Magdalena Valerio said Monday that she hopes that this week will be completely definedthe agreement to increase the contributions of the self-employed in 2019in exchange for better benefits.

"Last week much progress was made in this agreement, which some have described as historic", said the minister during her speech at the 'Breakfast Press of Europa Press'.

The agreement was reached by three of the four autonomous organizations(ATA, UPTA and CEAT),the Uatae organization, which wants a certain date for the entry into force of the quotation system for real income, is separated from it.

In this sense, Valerio has stressed thatsuch a system "does not improvise"because "you have to cross millions of data", and recalled that, for now, the Government has committed to submit a first document on contributions for real income on January 31, 2019.

"We would be irresponsible if we set a period of days for this system," said the head of Labor, which in any case has stressed that the design of this system of contributions will be a priority of the Government during the next year.

After indicating thatSocial Security and the Haciend Ministryto have already put "hands to work" to cross the necessary data that make this system possible, Valerio has pointed out that the idea is that those self-employed whose income is lower than the minimum inter-professional salary (SMI) pay a lower price.

The agreement reached last week with three of the four self-employed organizations sets in motion a system of transitory quotation, valid for 2019. Throughout that year a new quotation model will be negotiated for its implementation, which will make the self-employed pay according to what they enter, except for those who bill below the SMI, for which a lower fee will be established.

When asked by the minister for the reasons why she still does not consider the agreement of last week with ATA, UPTA and CEAT closed, Valerio has indicated that she does it out of respect for thesocial dialogue table on Social Security,where unions and employers are represented.

"Then UGT, CC.OO., CEOE and Cepyme will arrive and say that I do not respect the social dialogue, this affects the Social Security table and this minister does not want the economic and social agents to reproach me." (The agreement) we have to see it in the social dialogue table and I hope that this week we can talk in agreement all, autonomous and social dialogue table, "he insisted.

In any case,Valerio has extolled the virtues of the agreement with the self-employedbecause although it implies "a little more contribution" will bring significant improvements in the social protection of the self-employed, such as extending the duration of the benefit due to cessation of activity and greater facilities for their access.

"I think that (the agreement) has a series of characteristics that are sure to be supported by all," the minister said.


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