The anger of employers with the rise of 8.6% budgeted for 2023 of the so-called “maximum contribution bases”, which quote the highest salaries, has revealed part of the Government’s intentions in the so-called ‘stopping’ of these higher salaries. Today, salaries are only quoted up to 4,139.40 euros gross per month, above that amount they do not contribute to Social Security. The Government has agreed with Brussels to increase this maximum price in the next three decades and this Monday it was revealed that the Executive intends that each year it increase as prices (inflation) and, in addition, with an additional percentage that is negotiated with social agents.
Last phase of the pension reform: the years for calculating retirement and the contribution of the highest salaries
This was explained by the Minister of Social Security, José Luis Escrivá, to the media when asked about the 8.6% increase in the maximum contribution bases included in the 2023 Budget project and that the CEOE employers has branded as “inadmissible”. Employers have criticized that the Government did not negotiate this increase at the open table on pension reform and have also attacked the amount of the increase itself (8.6%), in their very high opinion.
Escrivá has stressed that the increase in the maximum contribution base for 2023 corresponds approximately to the increase in prices according to the expected average inflation for the year (8.5%), which is the reference for the annual increase in pensions. The minister has defended that “the reasonable thing” is that what the highest salaries contribute increases at least as does the maximum pension. That is, with prices, like the rest.
A floor for the next ‘unstoppable’
The novelty lies in the fact that it is not only “what is reasonable” for this year, but also that the person in charge of Social Security has revealed that the Government’s intention is that inflation be the floor of the future evolution of the maximum bases and, therefore, , basis of the ‘unstopping’ process that is addressed for the coming decades.
To date, the maximum base is set in the Budgets, but without an established reference. Last year, for example, it rose 1.7% and pensions 2.5%, according to average inflation. In 2020 and 2021 the maximum base was not increased, at a time of support for companies with the ERTE and due to the crisis due to the pandemic, Minister Escrivá recalled.
The plans of the Executive now pass because the maximum base is increased at least with prices – as pensions will do – and, in addition, that “an additional percentage” be added, which is what is currently being negotiated with the social agents at the social dialogue table on pensions, as explained by Minister Escrivá and the Secretary of State for Social Security, Borja Suárez.
The negotiation with employers and unions faces the last phase of the government coalition’s pension reform and has two central elements: precisely, the increase in the maximum contribution bases and, on the other hand, reviewing the calculation period to calculate the pension.
José Luis Escrivá has explained to the press the Executive’s plans to justify his “surprise” at the businessmen’s complaint against the 8.6% rise by 2023. The minister has maintained that he is “very surprised” at the criticism businesses, since they were aware of this ministerial proposal that the maximum bases be increased according to prices from now on, he maintained.
The negotiation on this last block of changes in pensions has hardly taken off until now, with complaints from the unions and employers for the lack of a concrete proposal by the Government. The Minister of Social Security has asked “to give time to negotiation.” “We are making good progress,” he added.
Spain, far from the EU
Those responsible for Social Security have stressed that Spain addresses the so-called ‘unstoppable’ of the maximum bases in the pension negotiation because we have a “reduced” ceiling compared to other EU countries.
In other words, the ceiling on the contribution up to 4,139.40 euros gross per month is reduced compared to other European countries, so it is intended to increase what workers with higher remunerations contribute and, also, the maximum pension that they will subsequently receive. of the public system.
How much the maximum pensions will increase and if they will do so in the same proportion as the maximum bases is still unknown and one of the keys to the negotiation of this piece of the reform, which must be approved by the end of the year.