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Thursday, May 26, 2022
HomeLatest NewsEscrivá is developing his own CPI to raise minimum pensions more than...

Escrivá is developing his own CPI to raise minimum pensions more than the rest.

The Minister for Integration, Social Security and Migration, José Luis Escrivá, is exploring various formulas in order not to violate commitments made in recent years and to continue to promote minimum pension increases above those set for all benefits of the system. And one way he is exploring with his tech team involves tying the lowest pensions to own shopping cart, depending on the different consumption habits of lower income groups. The idea is to configure the system in such a way that the differentiated improvement in minimum pensions is not just discretionary, but calculated on the basis of predetermined and quantifiable parameters.

It should be remembered that Law 21/2021 of December 28, guaranteeing the purchasing power of pensions and other measures to strengthen the financial and social sustainability of the public pension system, the first part of the reform agreed with Brussels, which entered into force on January 1, establishes that “Social security pensions in their funded form, including the minimum pension, will be reassessed at the beginning of each year at a percentage equivalent to the average of year-to-year fluctuations in rates expressed as a percentage of the consumer price index for the twelve months to December of the previous year.” While the government remains firm in its commitment continue to promote the minimum pension of the state pension system above the resteven in conditions of high inflation.

Late last year, Escriva managed to evade a series of amendments from parliamentary investment bloc partners that required him to set a minimum pension at the same level as the minimum interprofessional salary (SMI, which at the time was 965 euros per month), and this threatened to put even more strain on the financial seams of Social Security. In return, he had to express in black and white his intention to revise the minimum pension system in a year and highlight, with the help of social agents, a new scheme that would take into account the evolution of the media, as agreed in one of the amendments agreed with the ERC, with which the minister had to compromise to approve its pension reform in Parliament.

Finally, this commitment was reflected in the Official State Gazette: “The Government, within the framework of social dialogue, will consider revising the criteria for determining the amount of minimum pensions in order to guarantee their sufficiency in accordance with Article 50 of the Law on the Constitution and Article 4 of the Additional Protocol to the European Social Charter . Subject to this review, the Government will advance within a maximum of one year the regulatory changes necessary to establish rules regarding the evolution of minimum pensions that take into account the evolution of the minimum interprofessional wageguaranteeing the financial and social sustainability of the state pension system”.

Thus, Escrivá agreed to include a commitment to develop in the field of social dialogue a common formula to take into account the minimum wage in the revaluation of minimum pensions, compared to the original approach of ERC and Bildu, which proposed a goal-oriented configuration of the system of automatic revaluation of minimum pensions, so that they reach the level , comparable to 90% media. Instead, the minister embodied an ambiguous obligation in the law, avoiding detailing the specific link between the GIMS and the minimum pension and including the slogan “ensuring the financial and social sustainability of the state pension system”which leaves, in black and white, a wide field for the head of welfare.

The size of the minimum pensions is established annually by the Government in accordance with the law in the General State Budget. In 2022, they were revalued 3% above the total growth of 2.5%, which means that The minimum pension for a pensioner with a dependent spouse is 851 euros per month, without a spouse – 721 euros.well below the minimum wage of 1,000 euros. Initially, Escrivá promised, together with parliamentary coalition partners, to study the link between the lowest pensions and SMI, as required by various associations of pensioners and pensioners. However, the minister is now evaluating other options, which he plans to bring to negotiations with employers and unions in the coming months, taking into account the second part of the reform.

It was put forward this Wednesday by the Minister of Social Welfare, Israel Creek, during a press conference to present data on unemployment and membership for April. The second issue of Escrivá reminded that in recent years the minimum pensions have exceeded the rest of the benefits of the state system and that precisely one of the elements to be discussed at the social dialogue table is a decision so that this differentiated improvement of the minimum pensions in relation to the rest is not something sometimes discretionary, but given by indicators. And then Arroyo gave an example “differentiated consumption basket” or “other elements” – without mentioning the media – which set up a system that removes these elements of discretion and determines how much the lowest pensions should be higher than normal.

The government’s commitment to the lowest earning retirees remains intact despite rising inflation. As well as a mandate to link benefits to the CPI to ensure that the purchasing power of public pension recipients is maintained. This has been conveyed by the executive branch of the European Commission in the new Stability Program 2022-2025, which provides for an overall pension increase of around 6% in 2023. And this despite the warnings of organizations such as Bank of Spainwhich requires an income agreement in which both employers and employees tighten their belts, and which also includes the sacrifice of pensioners, avoiding universal indexation of public benefits and approval of CPI increases only for the lowest pensionson which the most vulnerable groups and those most exposed to price increases depend.


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