Escrivà rectifies and raises the rise in social security contributions to 0.6 points

The Government has raised to 0.6 points the proposal of additional contribution to Social Security that they will have to pay for ten years companies and workers, at a rate of 0.4 points and 0.2 points, respectively, to balance the accounts of the system, as reported this Monday by the unions. As explained by CCOO and UGT, this has been the proposal that the Ministry of Inclusion, Social Security and Migrations has brought to the table this morning with employers and unions in which they negotiate some of the pending measures of the pension reform that it is being processed at this time in the Cortes.

The proposed rise this Monday would leave the tcontribution rate for common contingencies at 34.3%, of which 27.6% would correspond to the company and 6.7% to the worker, since it currently stands at 28.3% (23.6% is business share and 4.7% is employee). Sources of the Ministry of Inclusion have assured that this has been “a very productive meeting”, in which they have presented “small modifications on the proposal of last week on the intergenerational equity mechanism (MEI) “, including a 0.6 point rise (compared to 0.5 points in the previous meeting) and its distribution between company and worker.

Meeting of the Council of Ministers

“Progress is being made and the conversations will continue in the coming days,” they added from Inclusión. Trade union organizations have valued “the shift in the Government’s position in terms of centering the definition of the MEI around a income improvement and the improvement of this proposal in terms of intergenerational equity compared to the Sustainability Factor that is now repealed. “However, they have considered that the proposal should be improved in terms of sufficiency, with more income, and a better distribution of the additional contribution between company and worker.

This, they added, should not predetermine future negotiations within the social dialogue, if necessary, while at the same time to improve in all matters pending development still of the Pension Agreement last July. This rise in prices social, which would apply from 2023 to 2032, would have a finalist character, since it would be destined to nourish the Social Security reserve fund, the so-called “pension piggy bank”, which currently has barely 2,000 million euros.

The objective of this mechanism, which will replace the sustainability factor approved in the 2013 reform and already repealed, it is guarantee the pensions of the so-called “baby boomers“, those born between the late 1950s and mid-1970s. In addition to this increase in social contributions and as part of the intergenerational equity mechanism, the Government must maintain pension spending over GDP according to the projections of the European Commission report on pensions, the Aging Report (0.8 points of GDP, about 10 billion euros as of today).

And for this, Starting in 2032, it will review this ratio every three years and, in the event of a deviation, it will have to take additional measures agreed within the social dialogue and in accordance with the Toledo Pact. This would be the case, the sources consulted explained, of a contingent tool and would only be activated if certain circumstances arose, such as an increase in pension spending, and it would also be temporary and balanced, since it would not be supported by a single generation.

The ministry, employers and unions rush the last meetings of the social dialogue table to try to close this intergenerational equity mechanism, which was outlined in the pension reform bill and that the Government wants to introduce in the Senate amendment process so that it enters into force together with the rest of the measures on January 1.

Source: LA INFORMACIÓN – Lo último by

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