Escrivá parks raising the pension calculation to 35 years

The master lines of the labor and pension reforms, the two that the Government had left pending of the thirty transformations that in total it has to develop linked to the recovery plan, are already ready and sent to Brussels. And the social agents already know them: the Executive brought together the employers and the unions to present them yesterday afternoon after referring them to the Commission.

In labor matters, 17 structural reforms will be carried out divided into several blocks, among which are the reformulation of employment or training policies, as revealed by the Minister of Labor, Yolanda Díaz, at the press conference called to wear the long the last agreement on ERTE. In addition, it will address the “modernization of the labor market” and the “pathologies” that the Spanish labor market suffers after “52 labor reforms that have gone in the same and only direction, consolidating a model that has enormous deficiencies,” added the Minister, referring to the high rates of structural unemployment, especially among youth, and the high percentage of temporary employment.

In this sense, on the one hand, the project sent to Brussels proposes the simplification of the number of contracts, with its predictably limited to three: indefinite -which is designed as the basic one-, temporary and training. And, on the other hand, as the Minister of Inclusion, Social Security and Migration, José Luis Escrivá, advanced in the same press conference, it is intended that the “internal flexibility” provided by the temporary employment regulation files (ERTE ) is integrated into the system permanently and more effectively than in the past, to avoid that the solution to temporary situations of falling demand is dismissal and loss of work.

The will expressed by Díaz is that the reforms lead to social dialogue. Hopefully I can finish with an agreement. But this is not always the case, “said Díaz, who also pointed out that social agents are” reasonably satisfied “, because they all agree with” the diagnosis. “

Likewise, the Executive’s spirit goes through evaluating the public policies that are deployed, after having concluded “what does not work” at present, as illustrated by the Minister of Labor: 169 million contracts signed since 2012 and more than six million of contracts only in 2019 with a duration of less than seven days.

The reform of subcontractors will also be addressed, in addition to bonuses and deductions for hiring, as well as the regulation of riders – today the social dialogue will meet to address this last issue. In addition, collective bargaining will be touched, to modernize it and accommodate it for the 21st century.

In parallel, the intervention in the labor market entails an investment chapter of more than 2,000 million with which, for example, active employment policies and the socio-labor part of the minimum vital income will be endowed.

Regarding pensions, the base document will be the Toledo Pact agreement. Although, according to Escrivá, this “requires a concretion”, which has already taken shape in the Budgets, which address the assumption by the State of 14,000 million in improper expenses, in addition to the promotion of employment plans.

Pension update

But, as Escrivá admitted, a “central element” that is being addressed in the social dialogue is the mechanism with which the purchasing power of pensions will “be guaranteed in any situation and horizon”. For the specific way in which it will be approached there are several options.

Other elements that the reform will include will be mechanisms to bring the effective retirement age closer to the legal age and discourage early retirement. And the little incentive to extend working life with proposals pending to be refined will also be resolved.

The minister also insisted that a more equitable system will be built for shorter and longer careers and for those that are more discontinuous, to alleviate possible contribution gaps. The text does not include the extension of the period for calculating the pension up to 35 years. Escrivá stated that it is not a matter of establishing another year or one less, but rather of analyzing the new realities of the labor market. One of the first measures to be adopted, he advanced, will be the establishment of a maternity supplement to close the gender gap that exists in pensions.

And if the sustainability factor is to be repealed, intergenerational solidarity mechanisms will be included.

In addition, to reinforce the contributivity of the system, the objective of Social Security is that from 2022 the self-employed begin to contribute by their real income in a progressive manner.


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