Escrivá proposes increasing the period for calculating the pension from 25 to 28 years

After weeks in which the social partners expressed their concern and a point of impatience at the lack of proposals from the Ministry of Inclusion and Social Security to face the last phase of the pension reform, they finally arrived yesterday.

Thomas Osborne
Thomas Osborne
28 November 2022 Monday 13:40
24 Reads
Escrivá proposes increasing the period for calculating the pension from 25 to 28 years

After weeks in which the social partners expressed their concern and a point of impatience at the lack of proposals from the Ministry of Inclusion and Social Security to face the last phase of the pension reform, they finally arrived yesterday.

On the one hand, Minister José Luis Escrivá proposes extending the period of years contributed to calculate the pension from the current 25 to 30, with the important caveat that the best 28 will be allowed to be chosen. That is, the worst 24 monthly payments are discarded .

In addition, improvements are also incorporated in the treatment of contribution gaps for women and also for men whose contribution career has been reduced after having a child. This is done in line with how the gender gap plugin works. There is also a specific treatment for gaps in the contribution of the self-employed.

On the other hand, the second great proposal is to uncover the highest pensions. In other words, the contribution bases will be increased by 30% in a gradual process, over 26 years. Specifically, from 2025, the maximum base will increase according to the CPI, plus an annual increase of 1,154 points, and this until the year 2050. Of course, this increase in price will also be accompanied by an increase in the pension once these workers retire.

The two proposals have found a strong response from the outset. Both the minority partner of the Government and the unions have spoken out against increasing the period of time to calculate the pension. Sources close to the second vice president and Minister of Labor, Yolanda Díaz, have stated that "the solutions do not go through cutting and an increase in the calculation constitutes a cut that makes it difficult to access retirement."

For its part, from CC.OO. They have indicated that "it is not a necessary measure at this time, when we have just completed the development of the previous extension, nor are we certain that it will have sufficient parliamentary support."

The employers have also received complaints. Referring to the two proposals as a whole, they have stated that “we have finally received a firm proposal for the second phase of the pension reform, which we will study but from the outset we do not see that it could lead to an agreement. In addition, it arrives so late that the role of the social agents is not well understood if it is to be approved within the established deadlines and without a political agreement”.