• Escrivá proposes extending the calculation period of the public pension from 25 to 30 years and choosing the best 28

The Minister of Social Security,

José Luis Escrivá

, has barely changed a comma in the

first proposal to reform

pensions

that he presented in the social dialogue two weeks ago, which condemns the negotiations to be prolonged and makes it difficult for the reform to see the light of day with agreement

before the end of the year

, as the Government has promised to Brussels in the Recovery Plan.

The

two main axes

on which this proposal revolves remain unchanged: the

extension of the computation period

to calculate the pension from the last 25 years of working life that are currently used to the best 28 of the last 30 years of work, and the

increase in the maximum contribution bases

between 2025 and 2050 according to an automatic mechanism, which will consist of adding an additional annual increase of 1,154 points to the CPI.

This last measure, as alerted this Monday by experts from the Foundation for Applied Economics Studies (

Fedea

), will function as

a "hidden and distorting tax" for workers

with higher incomes, to whom an increase in wages will be applied. bases that will not be proportional to the maximum pension that they will receive when they retire.

While the maximum bases will rise by 34.76% between now and 2050, the maximum pensions will do so by 3.03%.

"From CEOE we maintain our opposition, understanding that

the proposals imply

both

a cut in rights

and an

increase in labor costs

that will harm the labor market. Proposals that, furthermore, we do not consider that they allow improving the sustainability of the system. Despite our repeated insistence "We still lack an economic and impact report. We reiterate, furthermore, that the main measures proposed by the Government are outside the consensus reached within the framework of the Toledo Pact," employer sources pointed out yesterday at the end of the meeting.

Business representatives are not in favor of this measure, which has also been criticized by

Fedea

experts .

In the first place, due to

its collection impact it will be "very modest"

, barely two tenths of GDP per year, about 2,400 million, which contributes little to the sustainability of the system;

and, on the other hand, because "it means boosting

a hidden and highly distorting tax

that should not be part of the Social Security financing scheme".

"Social contributions that are applied to incomes above certain thresholds (those that would give the right to the maximum benefit) are, in practice,

a pure tax

(a monetary levy without any counterpart) that also has an

inequitable structure and very distorting

by applying very high tax rates on a limited and arbitrary basis. It would therefore be convenient to eliminate this peculiar Social Security tax, suppressing contributions above such thresholds, and replace it with something better, "the economists advise.

Specifically, they suggest that a "

solidarity surcharge on the personal income tax

" be applied, which could also serve to put an end to the transfers made by the State to Social Security and that are worsening their financial situation.

The employers are opposed to the proposal to raise the maximum contribution bases, but

so are the unions

because they think it is "

insufficient

".

In his opinion,

the maximum bases should not be capped

(currently, workers who earn more than 4,139.40 euros per month only contribute for the first 4,139.40 euros and the rest of their salary is free of contribution);

UGT and CCOO believe that the contribution rate -28.3% to be distributed, 23.6% for the company and 4.7% for the worker- should be applied to their total base or salary.

That would lead them to contribute much more money to Social Security, which should therefore lead to an increase in their pension in the future.

"

Raising the maximum bases by 30% is scarce

, when our initial claim was the absolute top", they point out from the UGT, who also see the 3% increase in the maximum pension as "scarce".

Carlos Bravo,

Secretary of Social Protection and Public Policies in

CCOO

, present at the negotiation, pointed out that the Government maintained "

an insufficient proposal

, clearly insufficient in relation to the increase in income derived from the action of the destope on maximum bases and wages Taller".

Extend the calculation period

The Government did not arouse support for this measure, but neither was it successful with its idea of ​​extending the calculation period to

the last 30 years of working life

, giving the option of

choosing the best 28.

"The Government has insisted on the proposal and has once again had the same response from the social partners:

it is not in the recommendations of the Toledo Pact

, we are not aware that there is sufficient parliamentary support and we do not understand, therefore, that without having Once both things are guaranteed, the Government brings a proposal that has not been debated within the table, again, as has been the case in previous sessions," said the CCOO spokesman.

The novelties that the Government introduced in the document presented this Monday are mainly aimed at

reducing the gender gap in pensions

, that is, the fact that the average pensions received by women are much lower than those of men.

Among them, the reinforcement of the

coverage of gaps

, raising up to 80% of the minimum base between months 49 to 72 (fourth to sixth year of work) for women between 35 and 45 years old and men who have suffered an interruption in those years of her working career after having a child.

"Coverage of

periods of leave for family care and reduced working hours for child care

is also improved . It is also proposed to increase additional growth in the gender gap complement between 2024 and 2025, in addition to the annual revaluation", as reported by the Ministry.

Nor have these measures been very well received at the table.

There is an improvement in the contribution gaps, but it is not enough

", they pointed out from

the UGT

. "Minimum pensions are not addressed at all and it is clearly insufficient in terms of integration of gaps, with

insufficient progress in relation to the supplement to reduce the gender gap

and a somewhat greater advance in relation to the proposals that we have made of periods of contributions for leave of absence in the care of children, the elderly, or reductions in working hours", they said from

CCOO

.

"In a matter of gap, the Ministry has incorporated some minor measure that points in the right direction. But essentially,

the proposal harms women even more than the

one that was studied last week, since now the possibility of cover contribution gaps for women between the ages of 35 and 45", denounced

CEOE

.

The social agents

did not set a new date

to meet during their meeting on Monday and asked the Ministry to send a new proposal before agreeing on a day that they can study before sitting down.

"

The movement of the table is very slow, extremely slow

, and therefore difficult to be able to predict that the term that the government is marking to end

before December 31

will be met ," lamented Bravo, from CCOO.

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  • Social Security

  • CCOO

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  • Jose Luis Escriva

  • personal income tax

  • GDP

  • pensions