Escrivá rules out extending the calculation period for pensions to 35 years

The Minister of Social Security is committed to “gently” raising the maximum pension and the maximum contribution baseThe increase in contributions will allow, says Escrivá, to increase the income of the system in the coming decadesThe next phase of the reform of the pension system will address “adjustments ” in the calculation of the pension for new careers in which there are contribution gapsThe Minister of Inclusion, Social Security and Migration, José Luis Escrivá, has stated that, within the framework of the negotiation with the social agents to complete the The pension reform, which resumes this Monday, will propose progressively raising the maximum pension and at the same time raising the maximum contribution base, which will contribute to the sustainability of the system. Escrivá, in statements to RNE, has underlined that the maximum pension in Spain is “relatively low” compared to that of other countries and has indicated that if it rises “gently” while increasing the ba maximum, the income of the system will increase in the decades of the 30s and 40s, which is where the system will suffer “a little more stress” due to demographics. time, in an analogous way, increase the price in the maximum base. If we do this gradually and smoothly, as we have planned and we are going to present it to the social agents today, that has the potential, from the point of view of the sustainability of the pension system, that it will increase collection in terms of social contributions”, he explained. In the documentation that the Executive sent to Brussels, the Government intended to approve the gradual increase in the maximum contribution base, accompanied by an adaptation to it of the maximum pension, before the end of this year, although its implementation would cover the next three decades.” The adaptation of the system requires a gradual adaptation of the maximum contribution bases that must be concurrent with a modification of the maximum pension so as not to alter the contributory nature of the system. That the evolution of the maximum bases adapt to a very gradual and known path in advance also allows economic agents to adapt appropriately”, the Government stated in its document. Pension calculation period Along with this measure, and following the recommendations of the Toledo Pact, Escrivá has pointed out that in this latest round of negotiations with the social agents to complete the pension reform, they will also address how to help improve the fairness of the system when calculating the pension in the new professional careers, which already they are not the traditional ones. The minister, who has ruled out that the period taken into account to determine the amount of the pension will be extended from 25 to 35 years, has explained that, for one in three workers, the best years contributions are no longer the last of their careers, as was the case previously. For this reason, and in order to improve the fairness of the system, he believes that “we have to turn this around” and analyze Find out with the social agents if it is possible to act on the period for calculating the pension and at the same time “destroy the worst years of contributions” and give better treatment to contribution gaps (periods in which contributions are not made due to not being employee). “We have to discuss with the social agents what is the best combination of these three elements so that the system is more equitable and just and fulfills its function of protecting in some way those who have unexpected or unwanted situations and who do not it affects them negatively from the point of view of the future pension”, Escrivá pointed out, who insisted that “in no case” would it be a question of extending the calculation period to 35 years, but of “small adjustments” to improve equity Regarding another of the reform measures already in force, that of revaluing pensions with the CPI, the minister believes that the average inflation that is taken as a reference (from December 2021 to November of this year) “should not be much from current levels”, but, in any case, he stressed, “it will be what it has to be” and with it pensions will rise. Lastly, and regarding how Social Security affiliation is evolving in September, Escrivá has anticipated that it will be a month that, in average data, will yield “very important” job creation, since the month has started “really well” and some sectors that were “weaker” in past months are recovering, such as the of the construction.