Reform is weighing the possibility of striking down a decree that would modify unemployment benefits if certain provisions are not removed. A gradual reduction in pension contributions for workers over 52 is also under discussion. The central question remains: who benefits from this measure?
Sources from the Purple Party told Europa Press that they asked the Government to drop the amendment before next week’s Congressional vote, noting a change to the pension framework for those over 52 who currently receive the benefit.
The decree approved by the Council of Ministers on reforming unemployment benefits sets the rule that the benefit for workers over 52 will be 80 percent of Iprem or 480 euros. At the same time, the reform plans a gradual reduction in the pension contribution base, moving from 125 percent to lower levels in coming years: 120 percent in 2024; 115 percent in 2025; 110 percent in 2026; and 105 percent in 2027. If the aid is granted before June 1, 2024, the contribution base would remain at 125 percent.
The leader of the training bloc, Ione Belarra, described the executive’s decision as “extremely serious” because it lowers the contribution base for subsidy recipients, which would translate into a notable reduction in future pensions.
The same sources emphasize that this Government decision would mean that a 52-year-old worker who earned the national average salary throughout their career could expect only 22 years of contributions and benefits before retirement, effectively reducing their pension by 162 euros per month, or 2,268 euros annually.
Details have already been communicated to the Administration, which rejects this cut. This is contained in the third temporary provision of the decree, promoted by the Ministry of Labor led by Yolanda Díaz and previously warned about by unions and retirees groups such as Coespe.
The Purple Party, which has maintained contact with affected groups, considers it unacceptable to see the future pensions of a particularly vulnerable demographic being reduced in a manner that is not transparent. It reiterates its commitment to a public pension system and to retirees’ purchasing power. If this measure advances, the party says it will vote against it.
The first plenary session of the 2024 Congress will discuss and vote on Wednesday, January 10, on decrees reforming unemployment benefits and measures addressing the consequences of the conflicts in Ukraine and the Middle East.
This extraordinary plenary session, held during a non-working month for parliamentary purposes, will take place at the Senate headquarters because the Congress chamber will be undergoing renovations throughout January as new touch screens are installed in the seats.
Both decrees have come into force and were published in the Official State Gazette. It is now up to Congress to approve or repeal them.