The Executive will raise at least two million pensions by linking them to the SMI

• CÉSAR URRUTIA

  @cesarurrutiasj

  MADRID

Updated Tuesday, 23November2021-02: 00

• Share on Facebook

• Share on Twitter

• Send by email

Comment

• PENSION REFORM The Toledo Pact protests against Escrivá's "outrage" of Congress in its pension reform

• PENSION REFORM Escrivá closes the door to the demands of forced retirees from the financial crisis

The Government will link the minimum pensions to the evolution of the SMI.

The commitment to have the pension reform approved for next January 1 obliges the Executive to

among all groups and that has linked the norm to the support of ERC and Bildu while other groups such as PP or Citizens their contributions are rejected.

Specifically, due to the transactional amendment approved yesterday in Congress, the Government undertakes to promote, within one year from the approval of the law, "regulatory modifications to establish rules relating to the evolution of minimum pensions

, guaranteeing the financial and social sustainability of the public pension system ".

Therefore, the commitment opens a way to reinforce the Minimum Interprofessional salary as an increasingly relevant indicator in macroeconomic terms. Pedro Sánchez's promise to place it at 1,000 euros - now it amounts to 965 euros - represents affecting the wages of one in five workers, around four million. The new obligation will move all pensions that are below the minimum and that must be supplemented to reach it, a number that

The economic impact on a system that is reformed for sustainability reasons is uncertain. The amount of the minimum pensions is set by law and in 2021 amounts to 609 euros in the case of a retirement pension with less than 65 years and a non-dependent spouse.

and in fact, most pensions, around 60%, are below the SMI. Through the amendment, Social Security undertakes to establish a relationship between minimum pensions and minimum wage that does not have to be equivalent, but a proportion yet to be determined. If, for example, it were established that the minimum pensions should represent 80% of the current SMI, the benefit of 609 euros in the previous case should be increased by 163 euros per month, up to 772 euros.

The execution of this commitment would not happen before

1,

promised by Sánchez and would be subject to prior consultation of the social dialogue tables and the "financial and social sustainability of the system".

Given the experience of social dialogue with the pension reform led by

, the first condition does not make a great contribution.

In his latest reform proposal, Escrivá presented the Intergenerational Equity Mechanism (MEI) to employers and unions only 12 days before starting the parliamentary process, which began last November 15 only with union support.

The second condition, however, leaves Social Security free to determine to what extent it raises the minimum pensions.

as to serve as an electoral trump card without establishing any amount.

In this sense, the sustainability of the pension system has been Escrivá's argument to put aside the demands of the majority of forced early retirees with contribution careers of more than 40 years in the great financial crisis.

Until the current processing, his cause had been attended by the PSOE and defended by United We Can.

The

and the call effect that could cause offsetting the penalties to their pensions have canceled the commitments.

The same groups that have helped him to carry out the reform, warned the Government yesterday that they will demand that next year they compensate the rest of the pensioners. In exchange for their support, ERC and Bildu also imposed

. The creation of the State Agency for the Social Security Administration was also approved within six months from the entry into force of the law.

The Government, which has received a wake-up call from the Toledo Pact for running over all the guarantees established by the parliamentary procedure with its pension reform, has rejected all kinds of amendments from groups such as PP and Ciudadanos, as was the case with raise the maximum amounts for individual pension plans to 5,000 euros or seek alternatives to raising contributions.

As a result, the commission in charge of reaching a consensus in Congress on pension reforms considers that the Executive has given greater importance to dialogue with unions and companies than to the legislative branch.

According to the criteria of The Trust Project

Know more

• Social Security

• Citizens

• Bildu

• Pedro Sanchez

• Jose Luis Escrivá

• PSOE

• United we can

• Pensions

• minimum salary

Pension reform Escrivá closes the door to the demands of forced retirees from the financial crisis

Pension reform Raising the pension calculation to 35 years subtracts 105 euros per month from the initial benefits

Operational agreement The Government agrees in writing with the EU to "extend" the number of years to calculate pensions and uncover contributions

See links of interest

• La Palma volcano

• Last News

• 2022 business calendar

• Home THE WORLD TODAY

• Holidays 2021

• Podcast Economia

• How to do

• Verona - Empoli

• Real Sociedad B - Girona

• Torino - Udinese

• Rayo Vallecano - Mallorca

• Real Zaragoza - Leganes