People born during the baby boom era are expected to retire soon

People born during the baby boom era are expected to retire soon.

16-11-2021J. BAGUR GOMILA¶

Spain's government has agreed with unions to raise social-security contributions by 0.6% between 2023 and 2032 to help pay for the pensions of an upcoming wave of retirees, the Social Security Ministry said on Monday.

Spain experienced a baby boom during the last two decades of Francisco Franco's dictatorship which ended in 1975, and people born during that era are expected to retire soon, putting state finances under increasing strain.

The scale of the increase, which will affect employees of all ages and income levels, has been a stumbling block in the three-way talks between the government, unions and businesses that have been going on for several weeks.

Earlier on Monday the CEOE and Cepyme business associations, which respectively represent large and small companies, abandoned the negotiating table, arguing the plan placed too much burden on employers and would damage job creation.

Employers will contribute an extra 0.5% and the workers the remaining 0.1%, unions said.

Passing the pensions reform was one of the conditions Spain's government agreed upon with the European Commission to secure the release of billions of euros in recovery funds.

Comments

To be able to write a comment, you have to be registered and be logged in.

* Mandatory fields

Rich / Hace 2 months

I did a rough calculation some time ago and it worked out that the self employed would have to make a PROFIT of around 30k before they're national insurance payments matched the autonomo payments of Spain, which are collected monthly whether you make a profit or not. Warning, to those who wish to start a small business you will need 2yrs living expenses, atonomo payments ad 3x the business investment monies you think you need, then you stand a chance, just.

+-

Charles / Hace 2 months

For some reason and only known to themselves, my answer has, up to now, been given a few negative votes. Wouldn’t it be better for all concerned to explain why you don’t agree with it ? We all might learn something. The fact remains that self employed earning very little are hit with a 32% tax BEFORE income tax and are still expected to continue living and carry on running the business even during the depths of winter. Meanwhile the politicians .............

+2-

Charles / Hace 2 months

Increased by € 8 to € 294 a month. There is talk, which will no doubt occur, that your contribution will be based on your income. They can’t differentiate between income and revenue. The fact remains is that they consider it impossible (not improbable) for a self employed person to make less than around € 970 nett a month. To be eligible for a pension you still have to contribute for a minimum of 15 years.

+0-

Rich / Hace 2 months

What is the token payment of minimum 300€ doing? (Due whether you make a profit or not.)

+-2-