March 5, 2021

The Government now says that the increase of the highest quotas is not closed | Economy

The Government now says that the increase of the highest quotas is not closed | Economy

The rise of 22.3% of the minimum wage caused much confusion last week about what would happen to the minimum contribution bases of the self-employed and if they were going to grow in parallel, as they usually do. Finally, the government ruled out an increase in that entity, although it does intend to raise them somewhat.

Now the confusion has arrived for what is going to happen with the maximum bases. The president of the Airef, José Luis Escrivá, revealed on Thursday in Congress that the Executive planned to raise them between 10% and 12%. This would raise from 3,803 euros per month of the current base – about this amount is paid 36.25% in the case of a fixed worker and 37.5% in temporary – to 4,184.07 or 4,260.14 euros. This Friday, on the other hand, the spokesperson, Isabel Celaa, has indicated in the press conference after the Council of Ministers that, "the Government has not yet defined the contributions. He has not defined them that was not there. He is working on them. But in any case this issue will have to go through the Toledo Pact and the social dialogue table. "

From the Airef, unofficial sources have indicated that Escrivá only transmitted the information that the Ministry of Finance had informed him. The rise in maximum contributions also appears in a recondite section of the budget plan.

The highest pension is already 20% lower than the maximum base

The maximum bases of contribution, a reference close to the salary of the workers on which is calculated what is paid to the Social Security, take time to grow more than the maximum pensions. This lima a key principle of Social Security, contributivity: the retiree charges as paid. The system aims to guarantee this correspondence, but not exactly 100% and, even less, for high salaries. In fact, this group is required to quote more to redistribute something to whoever earns less.

This is seen with the difference between the maximum pension (36,121.8 euros per year in 2018) and the maximum base (45,644.4). The first is now 80% of the second, in 2010 it was 91.1%. If in the end, the maximum bases increase what Escrivá announced and the benefits do not grow in parallel, these will stay at 70% and the erosion on the contributivity will be accentuated a lot. A silent reform.

In the same line that Celaa showed sources of the Ministry of Labor, Social Security and Migration. In the department headed by Magdalena Valerio it is added, however, that the maximum bases increased in previous years (5% in 2013 and another in 2014) and that did not determine the subsequent evolution of employment, there were exercises of destruction and creation .

These chapters have generated a strong discomfort in Work for how calculations are being transmitted. Sources of this ministry allude to the debate that exists on the increase of collection that can suppose the increase of 22,3% of the SMI.

In addition to the Government's reaction, the announcement of the rise in the maximum quotation provoked an angry response from the CEOE and Cepyme bosses. "It can jeopardize the recovery of employment, at a time when signs of slowdown are already visible," said the second organization, led by Antonio Garamendi, who is shaping up to be the next CEO of the CEOE.

This association, for its part, made its own calculations on what impact it would have on companies. "The increase in the maximum contributions of up to 12% would result in an increase in costs of 1,761 million euros," CEOE notes in a note, which reduces the increase in revenue to 1,467 million if the rise in the high quotas It is finally 10%.

These numbers do not coincide with those of the Fiscal Authority. A possible explanation could come because the employers include in their calculations all the contributions paid by workers and employers (common contingencies, accidents at work, Fogasa and unemployment), and not only those that are destined to the pension system (common contingencies) .

The Airef and the employers do not coincide in the number of employees affected by an increase in the maximum contribution bases. The first figure in 1.5 million affected workers, as appears in its presentation in a figure attributed to the Ministry of Labor. This figure coincides with a CC OO study using gross Social Security data for 2015 and with other more recent reports that use the same numbers for 2016. The CEOE lowers that figure to one million.

Unlike the employers, UGT does like the measure, which is in line with one of the unions' proposals to increase Social Security resources, eliminate the ceilings in the maximum contribution bases to raise a few more 8,500 million. "It would place the Spanish Social Security system at the level of the European countries," said Pepe Álvarez, general secretary of the union.


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