Escrivá proposes to increase the top salary and the maximum long-term pension by 30%
The Ministry of Social Security, led by José Luis Escriva, has proposed raising the top salary by 30% over the next 30 years, according to negotiating sources, and progress has been made by El Pais. However, this figure has not yet been closed, yet remains the focus of negotiations in the social dialogue on pensions, with unions calling for a higher ‘closure’ than that figure. Escrivá is also considering increasing the maximum pension by the same amount, but it will not apply in 30 years, but later, when the workers who contributed the most will retire.
Spain, among European countries where high wages are least cited
Negotiations on pensions are currently progressing rapidly, albeit in bilateral and discretionary meetings, without formally being called to the negotiating table. The nature of the discussion has been chosen in this final stage of the most complex pension reform, which includes an increase in the contribution of the highest salary, but also a revision of the calculation years for calculating the pension.
A 30% or more increase?
Spain is one of the EU countries where the highest salaries are listed as the minimum. A limit has been established, the so-called “maximum contribution base”, set at 4,139 gross euros per month in 2022. Above this amount, the salary does not contribute to social security.
Thanks to this limit, there are some “35,000 million euros” in salary per year for the highest paid workers who do not contribute to the system when they exceed that limit, the Ministry of Social Security answers the questions of this media.
As such, Escriva’s ministry has proposed increasing that maximum base by 30%, according to negotiating sources, the union aspires to increase. That additional 30% will be very progressive over the coming decades and apart from inflation, which the minister has already advanced, the basis of which will be updated to the maximum, as well as pensions.
CCOO and UGT are more ambitious on this point, noting that the best paid workers should contribute like the rest of the workers. There is a wide range from the overall ‘breakdown’ of top pay to a 30% increase and it is strongly urged that this figure not be locked out of negotiations.
It is doubtful whether traders will agree
And there’s also a difference because it’s not yet clear which employers are going to enter into this latest pension agreement. At such a time, the organizations demand that the government take its approach further.
Employers have faced a certain paralysis in negotiations with the government and unions since the summer, with the results of their internal elections due next week to re-elect their boards of directors and their presidents. Everything indicates that Antonio Garamendi will be re-validated in office, although an alternative candidacy has emerged from the Catalan employers’ association, a clear sign of specific resistance to the current leader.
In this regard, the employers are acting very cautiously, so as not to take any wrong step that could harm Garamendi. After the election process is over, unions and the government hope that normality will resume at the open negotiating table, but there are doubts that this will happen. There is another electoral process on the horizon, a political process, which some voices fear will affect social dialogue, with fewer agreements strengthening coalition government action ahead of elections.
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