The Minister for Participation and Social Security, José Luis Escrivá, introduced a bracket system to increase the contribution of these higher salaries to be paid with this new income, applying the principle ‘the higher the salary, the higher the contribution’. future pensions. Therefore, for higher salaries 6,743.25 Euros per month (anyone 80,919 euros per year), i.e. a special surcharge will apply that exceeds the current maximum floor by more than 50%. 2025. This is one of the last minute innovations included in pension reform aimed at supporting the revenue of the public system to resist the retirement of the ‘generation’.baby boomersAs EL PERIÓDICO of the Prensa Ibérica group found out.
The royal decree, approved by the government at the Council of Ministers this Thursday, includes a new contribution package that mostly falls on corporations and focuses on taxing these top payrolls. Its purpose is for companies to bid for the entirety of their workers’ salaries in one way or another, something that has never happened before because they stopped contributing from the ceiling—baptized as the maximum floor. And for this he created asolidarity rate”, that the portion of the salary above the maximum floor will be taxed.
Initially, Escrivá’s proposal to employers and unions was a 1% surcharge that would come into effect from 2025, and this rate will be gradually increased to 6% in 2050, when maximum pressure is expected on the public system. Since boomers will retire anyway, subsequent generations will decrease in number, making it harder for them to pay their benefits.
However, between this first proposal and the text finally approved by the Council of Ministers, the structuring of the ‘solidarity ratio’ has changed. It remains progressive, but now stretches out. In 2025, salaries 10% above the maximum floor will have to pay a surcharge on the non-contributory salary of 0.92%. Those who are 10% to 50% above the maximum floor will pay an additional 1% fee. And those over 50%, 1.17%. This will gradually escalate until reaching 2050 with 5.5%, 6% and 7% respectively. The distribution will be 5 points for the company officer and 1 point for the worker.
120,000 million for retirement piggy bank
Further pressure on top wages added to the rise in the highest bases, the rise in inflation plus a 1.2 percentage point increase each year, and the overall contribution among all workers regardless of salary. Intergenerational Equality Mechanism (MEI). For a salary of 2,000 euros, the latter representing 10 euros less each month in their pockets as they go to Social Security. And from 2029 this quota will be doubled and the same salary will contribute an additional 20 euros per month. At this price, Escrivá expects to accumulate 120,000 million euros In his retirement piggy bank in 2040.
This greater pressure from social contributions CEOE He decided to walk away from reform and expressed his “vociferous rejection” of the reform. There are currently around 1.2 million workers in Spain whose salaries are above the current maximum floor. And these are concentrated in tech companies, consulting, banking or certain industrial sectors. profiles The impact among SMEs is expected to be less than that of large companies.