The CEOE and the Government clash over the increase in social contributions

The confrontation is served.

Thomas Osborne
Thomas Osborne
07 October 2022 Friday 23:45
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The CEOE and the Government clash over the increase in social contributions

The confrontation is served. The increase of 8.6% of the maximum contribution bases included in the general State budgets for next year has provoked the wrath of the employers who, in a harsh statement, described the decision as inadmissible and unilateral. The Government's reply came immediately from the hands of three ministers from the economic area. It is normal and usual to align the maximum contributions with the maximum pensions, argued the first vice president, Nadia Calviño. There is nothing new in it, Minister José Luis Escrivá insisted; and "the CEOE has a problem with equality," hammered the second vice president, Yolanda Díaz.

In any case, the forcefulness of the employer's statement was surprising, considering that "it is unacceptable that the Government has decided, unilaterally and behind the back of social dialogue, where negotiations are currently taking place for new reforms of the public pension system, to raise a 8.6% the maximum contribution bases”. He also adds that imposing a higher burden on companies is a serious mistake and that "it will have harmful effects on employment."

In this sense, they recall that a general increase of 0.6% in social contributions is already contemplated through the Intergenerational Equity Mechanism (MEI), aimed at ensuring the sustainability of the pension system. A mechanism that was agreed last November only with the support of the unions and with the employers against.

The CEOE criticizes this increase in the maximum bases both for the substance and for the way in which the measure has been taken. Protest against an increase in the base from the 4,139.40 euros per month now in force to 4,495.50; and complains that it has been carried out without consulting them. They recall that the table with the social partners to deal with the second part of the pension reform, and that it must deal with the so-called unstoppable contribution, met on Monday without this issue being discussed, so "the decision adopted it is unpresentable and devalues ​​social dialogue”.

In this way, adding this increase of 8.6% of the maximum contribution bases, with the 0.6% already planned for the MEI, the contribution increase in the case of high incomes will be a total of approximately 1,950 euros per year , of which 1,600 will have to be assumed by the company and 350 by the worker.

However, where the employers consider that the Government has turned its back on them, the Ministry of Inclusion and Social Security affirms that the initiative is the most common. “This statement has surprised me greatly because every year the maximum contribution bases rise,” said Minister Escrivá, insisting that it is necessary for these maximum contribution bases to increase in line with inflation, and recalling that in previous years there have been no protesters. this rise. "In 2013 and 2014, the maximum contribution base rose by 5% with negative inflation and I don't remember seeing any communication from anyone at that time," the minister added.

The Second Vice President and Minister of Labor, Yolanda Díaz, went further by accusing the employers of protecting high wages: “The CEOE, Mr. Garamendi, does not like equality. He wants to continue protecting the highest salary incomes”.

On behalf of the UGT, its general secretary, Pepe Álvarez, replied that in order to update pensions it is essential to raise the contribution bases. "The CEOE has to be aware that pensions in our country have to rise because there is a law that mandates it," a rule that they "supported and signed." He also added that the CEOE "will have the option of making proposals" in the parliamentary processing of the budget law.