The Minister of Inclusion, Social Security and Migration, faces an autumn marked by the urgency of fulfilling the commitment signed with the European Commission within the framework of the Recovery, Transformation and Resilience Plan (PRTR), to approve a second phase of the reform of pensions before the end of the year.
The changes to comply with what is known as ‘component 30’ include analyzing the unstopping of the bases and the maximum pensions that affect 15% of pensioners, as well as the computation to calculate the pension.
Escrivá has announced this Friday that his department will present to the social agents in September, still without a specific date, a proposal on the computation of the years of contribution for the new realities of the labor market, as recommended by the Toledo Pact.
Escrivá has stated that there are “several levers” on which one can operate. One of them is the extension of the calculation period, beyond 25 years, although it has also suggested that at the same time that it is extended, “a better treatment of the gaps, of the years that have not been quoted or (… .) that some years be excluded from the calculation”.
“There are different combinations. 30% of people no longer have those linear careers that existed before, which went from less to more, but since the financial crisis, we have greater volatility and there are people who have their last years not with their better conditions,” he explained in statements to La Sexta.
Although the unions have already expressed their rejection of increasing the calculation period, the minister has assured that the Social Security proposal will have an “added benefit” and hopes to reach an agreement with the social agents.
Good performance of employment in August
On the other hand, he assured that the behavior of employment in August “is going to be very strong, very dynamic”, after recovering the momentum lost during the last fortnight of August.
His portfolio announced this week that Social Security will lose 187,000 contributors in average affiliation in August, although it will add 65,000 in seasonally adjusted terms, a figure that the minister prefers to highlight and that he considers “very good data.”
“If we look at the data for August of the average for the years 2017-2019, which is a good reference, because they are three good years for the labor market, in this period of the year when activity falls, as is known, the fall was more than 200,000 jobs. Therefore, 187,000, which is temporary and seasonal, is something that does not concern us, on the contrary”, Escrivá said.
The minister hopes that the behavior of employment will continue to be “extraordinarily dynamic”, although he has recognized that “it is very difficult to make forecasts in the current context”. Even so, Escrivá clings to the 1.1% growth of the Spanish economy during the second quarter of 2022 and to “the mitigating effects” of the government’s measures.
The head of Social Security has also wanted to remove the shadow of a possible technical recession, and has explained that it is one more scenario in the agency’s projections.
“Economists, when we talk about the possibility, we refer to possible scenarios, but it does not have to be the central one, and the situation is very uncertain. There is a possible scenario of technical recession, which means a temporary drop in activity It is not the central stage,” the minister clarified.
Pensions with the CPI and increase in the ISM
Regarding current pensions, Escrivá has guaranteed that, as established by law, despite the rise in the CPI throughout the year. The minister recalled that Social Security income is also increasing, with an increase of 8.5% in July in social contributions.
“The balance between income and expenses only reflects an improvement in the situation. It is in a law that was approved in Parliament to give total certainty to pensioners,” he stressed.
As with pensions, Escrivá has indicated that (SMI), the Government’s commitment for this legislature, although he has recalled that it is a matter that concerns the Second Vice President and Minister of Labor, Yolanda Díaz.
Escrivá has specified that the Group of Experts is working to determine what the average salary is in Spain and thus be able to calculate 60% of that figure, which will be the SMI for 2023. However, the minister has stressed that “no figure” and the final decision will be made by the Government after discussion with the social agents.
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