The list of retirees will rise 0.9%, just over half that this year

MADRIDUpdated:10/16/2019 05: 31h

Next year will be the third year in which the Revaluation Index established in the 2013 pension law is not applied, which sets an annual rise of 0.25% in situations of Social Security deficit such as the current one (about 18,000 million). The ineffectiveness of the Toledo Pact due to the confrontation of politicians has not allowed the honorable members to agree on a single measure that allows to sustain the system, nor to change the norm, so the increase in pensions remains at the discretion of the government of the day.

As a result of an agreement between the PP and the PNV, pensions rose in 2018 1.6% and in 2019 1.7% (the initial 1.6% plus the subsequent tenth with which they were compensated for the price deviation). And in both cases the minimum and non-contributory ones were revalued by 3%, a percentage that, for the moment, the Executive has not confirmed also occurs in 2020. For this year the payroll of retirees will rise 0.9%, the forecast of the Government CPI, a percentage higher than 0.25%, but just over half of the 1.6% applied in the last two years due to weak prices.

Invoice of 2,140 million

The annual CPI of the Executive figure at 141 million euros the cost of revaluating passive class pensions by 0.9% for next year, and at 1,263 million euros the expense that this increase will imply for the rest of pensions. The bill will increase by 736 million after adding the improvement of parental leave and maintaining the subsidy for those over 52 years. Both measures were adopted by the Government of Sanchez in the electoral decrees that preceded the general elections of April 28.

Subsidy at 52

In 2013, the subsidy for people over 52 years old rose to 55 years; Sanchez returned it at 52 last March. In 2020 this aid will mean a disbursement of 400 million, to which 200 have to be subtracted for the contributions that the public employment service pays to the Social Security for the beneficiaries of the aid (they contribute for 125% of the minimum wage). This aid cost 695 million this year.

Paternity: 12 weeks

Paternity leave increased this 2019 from 5 to 8 weeks. The next will be from the current 8 to 12 weeks, with an eye on 2021 when the permit will be equipped with the 16 weeks that the mother enjoys. The cost of extending this benefit will be 336 million.

Less dynamic income

The text sent to Brussels reflects “very dynamic” growth and will reach 12.8% of GDP, compared to 12.4% in 2018, thanks, among other factors, to the rise in the minimum wage to 900 euros per month and upwards of the maximum bases by 7%. By 2020, the forecast is that contribution income does not have a "dynamic" evolution and is 12.9% of GDP, one tenth more than in 2019.