Employers to bear the high cost of maintaining the public pension system
Yolanda Díaz, the Second Vice-President and Minister of Employment, has made it clear: the sustainability of pensions in Spain depends on increasing the income of the system by reducing Social Security contributions, an economic charge that will be passed on mainly to employers and to a lesser extent to workers. Díaz announced that an agreement has been reached within the coalition government to “protect pensions and reinforce the redistributive nature of the system”.
“We will do this by increasing the income that companies will contribute from higher salaries and protecting lower pensions more,” she said in a message on Twitter.
This reform, he stressed, strengthens the lowest pensions, which particularly affect women, improving “the coverage of contribution gaps resulting from job instability”.
The Minister of Inclusion, José Luis Escrivá, has closed a reform that allows pensioners to choose between maintaining the current period of calculation for calculating the pension at 25 years or extending it to 29 years, with the possibility of removing the two years with the worst contribution, among other measures.
Inclusion will detail all the measures to employers and trade unions at the meeting of the social dialogue table convened at 12.30 today, at which they hope to reach an agreement at least with the trade union side.
The reform includes measures to improve the system’s income, starting with a reduction in the maximum contribution bases, an element rejected by employers, who are expected to withdraw from the agreement.
