Pensions The employer stands up to the sharp rise in contributions of the Escrivá reform: "It is voracious collection"

The employers' association is "frontally" opposed to the pension reform proposal that the Ministry of Social Security presented to it this Friday, after agreeing on it with Unidas Podemos and ensuring the support of Brussels, since it mainly consists of shielding the system by way of income with a strong increase in social contributions paid by employers, something they consider "collection voracity"

Pensions The employer stands up to the sharp rise in contributions of the Escrivá reform: "It is voracious collection"

The employers' association is "frontally" opposed to the pension reform proposal that the Ministry of Social Security presented to it this Friday, after agreeing on it with Unidas Podemos and ensuring the support of Brussels, since it mainly consists of shielding the system by way of income with a strong increase in social contributions paid by employers, something they consider "collection voracity".

"Given the proposal to reform the public pension system raised this Friday by the Ministry of Inclusion, Social Security and Migrations, CEOE, CEPYME and ATA, we show our most frontal opposition (...) We insist that the voracious collection of the Government, Through populist proposals like this, it will undermine the efforts of companies in wage negotiations, since the workers, with the greatest burden on the side of their contributions, will see part of the increases in their remuneration absorbed", they have indicated in a joint statement , sent to the press when the meeting that is being held at the Ministry headquarters has not yet finished.

The reform proposes the uncapping of the maximum contribution bases -so that the highest wages contribute to Social Security to a greater extent-, so that between 2024 and 2050 they will increase each year according to the CPI and an additional revaluation of 1.2 percentage points. A solidarity surcharge will also be introduced, which will be applied to the difference between the maximum base and the total salary and which will be 1% in 2025 and will increase at the rate of 0.25 points per year until reaching 6% in 2045.

In addition, the Intergenerational Equity Mechanism will be raised, which currently stands at 0.6 points (0.1 by the worker and 0.5 by the employer), up to 1.2% and will be in force until 2050 in place until 2032, as planned.

Although the increase in maximum bases entails an increase in maximum pensions, these will rise more gradually: they will increase each year with the annual CPI plus an additional increase of 0.0115 cumulative percentages each year until 2050. From 2050 to 2065 there will be increases additional

These measures mean solving the sustainability of the system by acting through income, which means that the weight of the adjustment is burdened by companies. "The maintenance of the system falls on the country's workers and companies through a general increase in contributions that will reduce the wages of all workers and increase labor costs, endangering job creation," the employers have warned.

The representatives of the businessmen have also disgraced the Executive for having "sold" the agreement without really negotiating previously with the social agents: "It is inconceivable, on the other hand, that the Government faces the reform of the pension system without the necessary debate and social dialogue after reaching an agreement with Europe in an unprecedented transfer of sovereignty Thus, the proposal violates the necessary debate that should have taken place in the Toledo Pact and is not accompanied by the impact analysis that the interlocutors have been demanding social since the summer".

In his opinion, the reform puts employment in the country and the evolution of companies at risk: "This proposal, finally, puts small companies and the self-employed at serious risk, which are the majority of the productive fabric of the country, with less financial muscle and with growing costs -energy, raw materials, financial, rentals, mortgages, tax and wages--, with the consequent negative effect on job creation", they have warned.

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