ELA points out that pensions lose purchasing power despite their rise

The head of the Studies Office of the ELA union, Michael Noval, has denounced that “pensions they will lose 1.4 points of purchasing power this year, and minimum pensions, up to 2.5 points”, with the reform approved by the Government of Spain. He has also criticized that the reform in this area “does not guarantee the CPI“.

In a union statement, Noval has indicated that the YoY CPI for November, which is the one taken as a reference to raise pensions, “was 5.5%” but, instead, the rise in pensions for 2022 “is going to be 2.5%, to which must be added the effect of the so-called paguilla, which is 1.6%”.

He has indicated, therefore, that “in reality”, the increase in pensions in 2022 is going to be 4.1%, clearly below the price increase, so there will be a loss of purchasing power of 1.4 points.

In the case of minimum pensions, the loss is greater, since “the announced increase in minimum pensions of 3% represents, in reality, a loss of purchasing power of 2.5 points.” This is due, he added, to the fact that “the so-called paguilla is not consolidated in the amount of the minimum pensions, so these are only going to rise by 3%, while prices rose by 5.5%”, has insisted.”

For ELA, this pension reform “does not guarantee the CPI, nor does it imply progress to place the minimum pension at 1080 euros”. He also believes that he is not going back on the delay in the retirement age or in the measures to cut new pensions.

Therefore, it has accused President Pedro Sánchez of making announcements that “have nothing to do with reality” and has called continue with the protests, just as the Euskal Herria Pensioners’ Movement is doing.