The Minister of Inclusion, Social Security and Migrations, José Luis Escrivá, has advanced this morning in an act together with the General Council of Economists (CGE) and the Professional Union that will resume the next measures of the pension reform for the end of the year, after the August break. Specifically, the minister explains that they will assess the uncapping of the bases and the maximum pensions that affect 15% of pensioners; and the computation to calculate the pension.
In the case of the stoppage and the increase in the maximum income, the minister pointed out that it affects that 15% of retirees who receive a public pension and have a salary of just over 2,800 euros per month. Regarding the adaptation of the pension calculation period, Escrivá explains that they will have to assess and calibrate the different proposals together with the dialogue table, without detailing the quantified extension in years, based on the objective of covering the “labor gaps” of new professional careers, arguing that the last years of work have less weight due to job losses.
Regarding the spending ceiling that has been approved this week, the head of pensions declared that this transfer to cover the deficit is “very similar to that of 2022.” “Incomes from contributions are growing above 8% due to the behavior of the labor market and the increase in regulatory bases, due to salary increases…”, he argued, although he admits a slight brake on the good behavior that dragged on the job market to date.
As for the Social Security deficit, Escrivá expects to meet the 0.5% target this year. “In fact, we are going 1,200 million above in collection and we will reduce four tenths of a point in 2022. By 2023 we would not go to a deficit of 0.3% due to the temporary issue of revaluation,” he explained, about the coffers of the Security system Social.
However, the weight of the increase in income from contributions may be diminished in the second half of the year, as recognized by the minister. Regarding the data for July, the minister has acknowledged that there is a “certain slowdown” in the rate of employment growth, mainly in the last fifteen days, although he has indicated that after such high growth in the first semester “it gives the impression that there has been an advance in employment decisions”. “At some point we were expecting a slowdown, because this growth was not sustainable,” he added.
However, he has affirmed that he would not give it a “cyclical weight”, because “it could be a matter of lag and temporary readjustment of decisions”. Although this feeling of worsening expectations is also reflected in the macroeconomic picture made public this week by the economic vice president Calviño, who increased the expected unemployment rate by 0.3% for 2023, up to 12%.
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