CÉSAR URRUTIA
@cesarurrutiasj
MADRID
Updated on Wednesday, 17November2021-02: 05
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The new contribution created by the Government to fill the pension reserve fund
will raise labor costs by 2,000 million euros per year
without representing a clear element of balance for the future pension system.
Neither on the side of generational equity nor on the contributory side of those who will raise contributions without this being reflected in higher pensions.
The Intergenerational Equity Mechanism (MEI) agreed between the Government and the unions was born thus generating the certainty that it will imply
a surcharge in the payroll of workers of between 75.06 euros and 292.84 euros per year
depending on the bases with those that are listed.
But not that it will guarantee its objective, which is subject to numerous questions.
It also starts rolling its parliamentary procedure to become a reality on January 1, generating division, instead of the unanimity that guarantees a norm.
President
Pedro Sánchez affirmed yesterday that the MEI demands a "minimum effort"
from businessmen and workers to fill the 'pension box' that the Popular Party "emptied."
"The new mechanism does not improve either the sustainability or the equity of the pension system, and it reduces its contributivity, placing most of the expenditure on the younger generations, who will probably have to bear benefit rates (average pension over average salary) plus losses and higher indebtedness ",
Rafael Doménech and Enrique Devesa
summarize
in a report by BBVA Research, BBVA's research service.
The report highlights the semantic change in the measure of the Government, which from working on a factor (quantity that is multiplied to obtain a product) has gone on to present a mechanism. When the social agents expected from Escrivá a formula that would introduce life expectancy in the calculation of pensions as a way to contain the expenses of the system, the Minister of Social Security surprised employers and unions with an increase in contributions.
CEOE and Cepyme
refused to endorse the measure, which will arrive this week in Congress to be processed by the most urgent route.
"In addition to delaying the adjustment to 2032, it
thus takes us away from what a long list of European countries have been doing for years
through automatic adjustment mechanisms, sustainability factors or delayed retirement age linked to life expectancy", say Doménech, head of economic analysis at BBVA Research and Devesa, professor of Financial and Actuarial Economics at the University of València.
The MEI creates a quote that recharges the payroll with 0.6% for 10 years from 2023 with which it hopes to raise 50,000 million euros until 2032, although independent studies reduce this estimate by more than half.
As it assumes that it may still be insufficient, it opens the door for future governments to continue raising that finalist contribution from 2032 or to lower pensions.
It remains to be seen
if the European Commission values the MEI as an alternative to the repealed sustainability factor.
Be that as it may, workers and companies must contribute their quota to this new price from 2023.
Taking the contribution bases as a reference, the new 0.6% is distributed in an approximate proportion of 80/20, that is, companies contribute 0.5% and workers 0.1%.
Escrivá assured yesterday that it will have no effect on employment in a country with more than 3.5 million unemployed and an unemployment rate of 14.6%.
"We are not creating any problem of job creation. In Spain there is no problem of labor costs," said the minister yesterday
.
On the employees' payroll, the contribution will directly subtract between 12 and 48 euros per year (1.05 and 4.07 per month), depending on whether it is quoted for a minimum base of 1,050 euros or 4,070 euros for the maximum.
On these, the contribution of employers will amount to between 63 euros per year and 244 euros more per year (5.25 and 20.35 euros per month).
Thus, in total, the surcharge on labor costs ranges between 75 and 292 euros per year.
According to the latest labor cost survey carried out by the National Institute of Statistics (INE), the total cost per worker in Spain amounted to 31,150 euros. Of this amount,
the most important item of non-salary costs was the mandatory Social Security contributions
(7,335.87 euros per worker), which represented 23.6% of the total cost. In 2022, the maximum contribution base will grow by 1.7% and it will be from the following year when the 0.6% surcharge is applied to fill the pension reserve fund.
But changes in the structure of labor costs linked to pensions have not ended. Social Security plans to tackle
the contribution gap next
year in order to reinforce its income, the main pillar of the system.
In total, the Government has budgeted for income of
136,345 million euros in social contributions
for 2022
,
9% more than in 2021. It is a very high figure that is explained by the increase decreed and the recovery of employment, but which results
insufficient to cover the costs of the system.
Next year, Social Security will receive from the State more than 36,000 million euros, 16.4% more.
Of the budgeted income, 127,224 million euros correspond to contributions from companies and employed workers (+ 9.7%);
8,755 million euros to contributions for the unemployed (-0.4%) and 366 million euros to contributions for the cessation of activity of the self-employed (+ 12.9%).
According to the criteria of The Trust Project
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Social Security
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