important development who experienced labor market Alicante has represented an important place over the past year. Injection for Social Security vaults, contributing to the reduction of the significant deficit that this institution has in the province, which increased significantly during the pandemic. This is good news, especially considering that this increase in resources is occurring. before the last pension reform takes effectThis will mean an increase in contributions, especially for the highest salaries.
Thus, according to the latest data on the geographical distribution of Social Security expenditures and revenues, Alicante residents paid 3 billion 533 million euros to the public institution meaning an increase through 2022 17.4% 4% more than the previous year, as well as the figures recorded in 2019, the last year of normalization before the emergence of covid-19. Up to 3.496 million of this figure came from social contributions, which workers and companies pay through payrolls and are the main source of income for the system.
However, this amount far from covering all costs The public institution in the province did not allow reduce the hole available. Specifically, compared to the gap of close to 1,700 million euros between revenue and expenses in 2021, last year’s deficit 1.241 million, because total payments amounted to 4,770 million. Of these, 4.038 million corresponds to the payment of subsidized pensions, and the remainder to other types of benefits – such as maternity leave or temporary incapacity for work – and the Administration’s own operating expenses, including civil servants’ salaries.
The reason for this significant increase in SGK revenues should be sought in the significant increase in Turkey. number of affiliates, that is, in the number of workers employed and thus contributing to the system. In this sense, it should not be forgotten that the province broke the record number of participants many times and closed the year with a total of 708,552 jobs, 25,211 more compared to previous year
by the regimes, working workers contribute to the system 2.808 million the euro, which is 23.7% more; while self-employment added 395.5 million, 18.27% more. Contributions of beneficiaries for their own share unemployment benefit -which is still on the list- decreased by 23.9%, 280.3 million euro.
With the increase in the number of workers employed, changes in hiring labor reform, As the professor at Miguel Hernández de Elche University points out, Pedro Pablo Ortuno. And especially, existing limitation to apply part-time shifts in contracts discontinuous constant which have collectively replaced hard and fast temporary contracts. And unless covered by the relevant industry contract, this method requires all workers to be full time, which results in higher premiums.
It should also be taken into account that there were almost no workers left last year. delayThis was one of the reasons that caused the Social Security revenue volume to drop significantly in the first two years of the pandemic.
In total, according to the latest official data in the province, 333,318 contribution retirement, with an average of 1,031 Euros per month. The largest of these is for retirement, with a total of 215,439 beneficiaries and an average of 1,170 euros. The current pension of 81,126 widows, whose monthly payroll is barely 768 euros, is much lower. The other 23,107 Alicante residents receive an average of 1,014 permanent disability benefits.
About 23,000 high-paying Alicante residents will have to contribute more
The enactment of the pension reform, approved by the government and unions, with the opposition of employers, will mean an increase in SSI payments, especially for the highest paid professionals. Specifically, in addition to the intergenerational equity mechanism that all employees have already paid since 1 January and will increase from the current 0.6% to 1.2% in the coming years, those earning more than approximately €54,000 gross per year are also on the maximum contribution base. they are affected by the increase and the so-called solidarity quota, a kind of ad hoc tax on high incomes, which they want to help fill the so-called ‘retirement piggy bank’.
In the case of the province of Alicante, according to the latest data on wages released from the Tax Office, around 23,000 workers will be affected by these last surcharges, as they exceed the above-mentioned amount of income.
We’ll see if this reform meets Social Security’s goal of balancing the current gap between expenses and income.
Source: Informacion
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