June 21, 2021

The Government announces that it will compensate the pension for the periods without contributions after having a child




The Ministry of Inclusion, Social Security and Migration finalizes the mechanism for compensate the pension for periods of low or no contribution after having or adopting a child and that could already be in force at the beginning of next year, the minister, José Luis Escrivá, has told EFE. This change, which will be made by modifying the General Law of Social Security, involves reformulating the maternity supplement in pensions that the Court of Justice of the European Union (CJEU) considered discriminatory with men.

For this, Escrivá explained, at the time of retirement, work life will be seen and they will apply compensatory coefficients for those unlisted periods after having or adopting children that will increase the amount of the pension. “It is a regulatory change that establishes a payment associated with periods of low or no contribution to Social Security in the periods after having a child,” he said.

It is yet to be determined what “window of time” will be taken into account after the arrival of a child to see those “contribution gaps”. “We are at a fairly advanced point,” Escrivá acknowledged, who trusts that this regulatory change, without legal risks due to discrimination, will be in force at the beginning of next year.

“It is not discriminatory between men and women but (…) we have every assurance that it will be a benefit that, in a very high percentage, it will favor women and help reduce the gender gap in pensions, “he defends.

PP complement

The maternity supplement in pensions, approved in 2016 by the PP government, established an additional percentage in the amount of each new pensioner based on the number of children they had had: 5% more for two children, 10% for three and 15% for four or more children.

As of August 31, 2020, 319,896 women were collecting the maternity supplement in their retirement pensions for an average of 59.5 euros per month, according to Social Security data.

According to the latest pension payroll, that of October, there are 3.7 million men receiving a retirement pension for an average amount of 1,345 euros, while in the case of the 2.4 million women pensioners the average pension does not reach 892 euros.

In this way, the gender gap in retirement pensions stands at 33.6%, although in the case of new registrations it is reduced to 19.5%, while a decade ago in these new registrations it also exceeded 33, according to the Social Security data.

With the modification proposed by Escrivá it would be to compensate for reductions in working hours, or layoffs, which have occurred after maternity, since it is mostly women who have the largest contribution gaps.

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