Díaz: expanding the calculation of pensions "is cutting rights"

José Luis Escrivá is a minister renowned for his erudition on economic issues but he shines less when it comes to forging consensus. He has shown it again with his proposal for the last phase of the pension reform, which has provoked very negative reactions. He not only has unions and employers against him, but also Podemos.

It is true that the Minister of Inclusion and Social Security addresses a highly controversial element, such as extending the computation period to calculate pensions. The specific proposal, to which La Vanguardia has had access, proposes passing it from 25 to 30 years, although with the option of eliminating the two worst years. And he sets out a gradual and detailed scale of increases year by year.

He proposes it thinking about the reality of many professional careers that are no longer like before, that no longer have the best years at the end, and that present frequent gaps. However, he supposes touching a critical point, that although it is presented as fiscally neutral, it will have beneficiaries, workers with less linear professional careers or with gaps, but it may also be harmed. And this is politically very sensitive matter. This is where the no from the second vice president and minister of Labor, Yolanda Díaz, who from Guadalajara (Mexico), stated that “we are making changes in the labor market that advance the recovery of rights. This is not recovering rights. It is cutting rights”.

If the first reaction of the unions was already negative, this Tuesday their general secretaries joined the no. “I think that Minister Escrivá has made a mistake again… that he should leave it as it is,” said Pepe Álvarez, from UGT. And Unai Sordo, from CC.OO., declared that “it is not a necessary measure, it does not generate consensus for its approval.”

Less opposition, although yes from employers, has to get ahead the increase in the contribution bases of maximum pensions, 30% in 26 years. For this, each year, the bases of these pensions will increase inflation plus 1,154 additional points, between 2025 and 2050. This increase will be followed by an increase in the pension of those who have paid it. In this case, an additional annual increase of 0.115 points will be applied to the maximum pensions. It also specifies that “from the year 2050, to determine the amount of the maximum initial pension, an additional increase will be applied each year until reaching a real accumulated increase of 30%”.

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