The Spanish Government proposes raising contributions to guarantee pensions

The Spanish Government raises raise prices 0.5 points social for ten years, starting in 2023, as part of the intergenerational equity mechanism with which it seeks balance Social Security accounts in the medium and long term.

As sources of the negotiation have explained to the EFE agency, this has been the proposal that the Ministry of Inclusion, Social Security and Migration has brought to the table this afternoon with employers and unions in which they negotiate some of the measures that were pending of the pension reform that is being processed at this time in the Cortes.

As they have advanced The country and eldiario.es, this rise in social contributions would have a finalist character, since it would be destined to nourish the reserve fund of Social Security, the so-called “pension money box”, 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The objective of this mechanism, which will replace the sustainability factor approved in the 2013 reform and now repealed, is to guarantee the pensions of the so-called “baby boomers”, those born between the late 1950s and the mid-1970s.

The sources consulted have explained that the final ascent is not fixed of social contributions, since it will be the result of negotiations with social agents, nor what part of this increase will be contributed by the company and what part by the workers.

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’s pension report, the Aging Report (0.8 points of GDP , about 10 billion euros as of today).

And for this, from 2032, will review this ratio every three years and, in the event of deviation, it must adopt additional measures agreed upon within the social dialogue and in accordance with the Toledo Pact.