Within the Ministry of Inclusion, Social Security and Migrations, led by José Luis Escrivá, forges behind the scenes the second pension reform, which should have been approved at the end of December last year. However, the Government of Spain has not yet sent the standard to Brussels, although it is expected to do so before it closes this month of January. However, while waiting for this to happen, what will come into force in 2023 are some of the most important measures of the first pension reform, which will be completed in December 2021.
0.6% Another point to take into account has to do with the extension of the number of years considered to calculate the retirement pension, as well as the progressive uncapping of the maximum contribution base and the maximum pension, which will exceed 3,000 euros. for the first time in history However, it is not the only thing that changes.
Revaluation of retirement pensions based on the CPI
The Executive of Pedro Sánchez included in the 2023 General State Budget an increase of 8.5% for contributory pensions, that is, those paid by Social Security. In fact, the minister has sent a letter to nine million pensioners to let them know about this increase, which is to “ensure the purchasing objective” and “modernize” the pension system. On the other hand, non-contributory pensions, that is, those managed by the Institute for the Elderly and Social Services (Imserso), in collaboration with the autonomous communities, also rise, although they do so at a higher percentage. The minimum and maximum amounts will increase by up to 15% as of this same January, although their payment will be made effective next February.
The retirement age increases by 13 months in the last decade
The standard age to retire from the labor market is 67 years in the case of those workers who have contributed less than 38 years and 6 months, and 65 years if a contribution period of 38 years and 6 months or more accumulates. In the case of voluntary early retirement, it will be 64 years and 4 months, for workers with less than 37 years and 9 months of contributions. For the rest, it will be 63 years. On the other hand, with respect to involuntary early retirement, it remains at 62 years and 4 months for those who will be less than 37 years and 9 months with contributions. For the others, it will be 61 years. In any case, anyone interested who requests it must have contributed for a minimum of 15 years and it will be necessary to meet a series of requirements such as toxicity, mortality, etc.
Another aspect that seeks to change, and that is contemplated in the second pension reform, has to do with improving the pensions of people with irregular careers. The objective is that they can be adjusted around three elements: computation period, exclusion of the worst years and coverage of the gaps.
🔹The pensions of people with irregular careers must be improved, which are becoming more and more
🔹3 elements can be adjusted (computation period, exclusion of the worst years and coverage of gaps)
🟢We will discuss it with the social agents to achieve a fairer system pic.twitter.com/CT1yiEmrbj
– José Luis Escrivá (@joseluisescrivá) September 12, 2022
Extend the benefit of early withdrawal
Early retirement is an alternative that all workers can request. However, there are not many who dare because it implies a reduction in the monthly payments of their pensions. Precisely in this sense, some reduction coefficients must be applied by regulation that penalize those who wish to retire voluntarily, but whose agreement does not contemplate it. In this line, only eight groups have this possibility in Spain, they are:
The workers included in the Mining Statute. Aerial work flight crews. railway workers. The artists. bullfighting professionals. Firefighters at the service of administrations and public bodies. The members of the Ertzaintza Corps and the Local Police.
Enhanced Activated Jubilation
Another point to take into account is that due to the shortage of primary care physicians, that is, family doctors and paediatricians in the National Health System, improved active retirement comes into force. To be more exact, this new model will be accessible to those professionals who have retired as of January 1, 2022 or, in another case, have previously received the same type included in the standard approved in May 2021, due to to the coronavirus health crisis. In summary, you will be able to access full-time or part-time health workers, as long as the reduction in working hours is 50%, while you enjoy this improved active retirement and obtain 75% of your pension.
Sections of the new self-employed contribution system
The agreement that Escrivá reached with the social agents contemplated that the modification of the contributions will be made progressively in 2023, 2024 and 2025. Another of the changes for 2023 has to do with the increase in the quota of contingencies une comes, which happens from 28.3% to 28.9%.
28.9% for common contingencies. 1.3% for professional contingencies. 0.9% for cessation of activity. 0.1% for professional training.
If the self-employed contribute for common contingencies, they have access to the coverage that corresponds to them in the event of retirement, permanent disability, widowhood, remuneration in periods of leave and other family benefits.