The Ministry of Labor, Migration and Social Security has proposed to the social partners that the calculation of the eventual compensatory pay or paguilla of pensions is made with the average of the monthly CPI for the last twelve months, instead of with the November CPI as was traditional.
The Secretary of State for Social Security, Octavio Granado, explained to journalists after participating in the conference The adventure of entrepreneurship of the Chamber of Commerce of Spain that this formula, once it is developed, will have to be validated in the Cortes Generales.
With this system, the average of the last twelve months would be used -from December of the year prior to November of the present- with the objective of "cushioning" possible anomalies when using the data of a single month.
For this year, given that the average of the monthly CPI is 1.7%, the "paguilla" will be equivalent to a rise of 0.1%, about 128 million, which will be charged to the 2019 Budget because the 2018 does not enable a way to post this compensation.
On November 26, Social Security sources indicated that the December inflation data would be used to calculate the paguilla for an "accounting" issue, since in this way the expense can be allocated in 2019.
These same sources calculated that inflation would stand at 1.9% in December, three tenths above the applied rate, with the cost of compensatory pay amounting to 386 million euros.