The keys to the pension reform proposed by Escrivá

The keys to the pension reform proposed by Escrivá

The keys to the pension reform proposed by Escrivá

How will the pension reform proposed by Minister Escrivá affect society? How will they be calculated if approved?

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  • Euskaraz irakurri

Euskaraz irakurri: Escriva ministerak proposatutako pentsioen erreformaren giltzarriak

The Spanish Minister for Inclusion, Social Security and Migration, José Luis Escrivá, has closed a pension reform agreement with the European Commission and has presented it at the social dialogue table, to which he has summoned unions and employers.

According to this agreement, when calculating the pension, pensioners will be able to choose between two contribution periods: the current one, which contemplates 25 years; or a new one, which will contemplate 29 years. In case of choosing the second system, the two years with the worst contribution will be excluded from it. Social Security will automatically apply the most beneficial system, but the pensioner will have the opportunity to choose.

Objectives and deadlines of the pension reform.  Photo: EITB Media.

Objectives and deadlines of the pension reform. Photo: EITB Media.

Likewise, Escrivá’s text proposes assuming the first three years of leave or reduction for family care as 100% contributions.

Regarding contributions, it is contemplated to raise the maximum contribution base, which will be updated annually in the General State Budget Law in a percentage equal to that established for the revaluation of contributory pensions.

This reform is linked to the disbursement of the fourth package of Next Generation European funds. Therefore, Escrivá has agreed on the text with the European Commission and hopes to be able to approve it in the Spanish Parliament in the first half of 2023.

Source: Eitb

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