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HomeBUSINESSPensions have increased three times more than salaries in the past decade

Pensions have increased three times more than salaries in the past decade



Thousands of retirees from various autonomous communities demonstrated last Saturday in Madrid to demand a reassessment of pensions in connection with the increase in the annual accumulated CPI and the minimum pension of 60% of the average salary. It was the first manifestation of a series of protests to take place this fall, and comes a few months before their salaries grow 8.5%, in line with expected inflation, and four times what workers’ salaries have agreed upon. in agreements. If we compare with the average salary and look back, pensions have tripled salaries in a decade. From everything it can be concluded that the gap between pensioners and workers, especially the younger ones, is widening and represents a deep dividing line similar to the line that traditionally separates the north from the south of Spain. While in the last decade job insecurity and low salaries have prevailed in the labor market, especially targeting younger ones, retirees have been able to secure their incomes by reassessing their salaries using the CPI and with a higher rise, as a result of the inclusion of longer jobs and higher contributions into the system. The problem is of extraordinary depth, considering that Spain has a distribution system in which workers pay pensions to current retirees. If their salaries are low, as is the case with young people now, their contributions will be low and insufficient to cover the payments, which will continue to cause deficits and debts – Social Security currently totals 100,000 million required – and the state will have to continue to help the system, as it has been doing since years, and he will do the following by nearly 40,000 million. According to the latest data from the National Institute of Statistics, a Spanish worker earned an average of €2,097 per month in Spain in 2020, while a retiree earned an average of €1,170 per month (today the figure rose to €1,257). ). More favorable than the average salary is the most popular salary which, according to data from the latest annual salary structure survey, was around €18,490 per year in 2019, giving a monthly salary of just over €1,000 with two income disparity payments. By observing the details of the figures for the development in the past decade, both for the average wages of workers and retirees, it can be seen how the income of retirees has been more protected than that of employees, bearing in mind that both groups faced in this period the crisis of the financial crisis of the year 2008 and those caused by the pandemic in 2020. Pensioners’ payroll was more protected but it also had a ripple effect because families in very sensitive situations like those in the financial crisis have eaten up that income. Standard related news If Escrivá needs an additional 12,000 million to pay pensions until the end of the year, Gonzalo D. Velarde’s transfers to Social Security will increase 65% from last year Starting from public figures, a heterogeneous development can be seen among the income received . On the other hand, taking figures from the National Institute of Statistics’ salary structure survey, the average salaries of Spaniards at the end of 2020 – the latest available official data – amounted to 25,165.5 euros in total per year (2097.1 euros per month). Ten years ago, this gross salary was €22,790.2 per year (1,899.1 € per month). Therefore, the increase in average wages of workers has increased by 10.4% in the last decade. Mobile desktop icon image, subwoofer and application Mobile icon AMP Code 1400 APP On the other hand, the group of retirees, the majority of those receiving Social Security benefits, saw their income increase by 31.1%, somewhat more than three times that of wage earners. Figures provided by the ministry led by Jose Luis Escriva indicate the average pension at the end of 2020 – a figure comparable to the latest available data on workers’ compensation – with a total of €16,382.8 per year (€1170.2 per month). If we go back a decade to that date, we’ll see how the average benefit earned by retirees was €12,492.2 per year (€892.3 per month). In other words, the amount of the pension increased by 31.1% during the decade, which is three times the average salary of a worker in Spain. Reassessments The gap between pension and wage reassessments is due to increases in the two groups. Retirees payroll depends on the government, while updating the wages of collective bargaining workers. This is where the Employment and Collective Bargaining Agreement (AENC), which is negotiated by employers and unions, usually for a period of three years, and which establishes a frame of reference for increasing wages for employees, comes into play. As noted in official Labor Department statistics, the salary agreed to in collective agreements accumulates 14.3% re-evaluations between 2010 and 2020. In that decade the average increase was 1.3% per year. Although reassessments in the case of pensions are lower, it was affected by the four-year increase of 0.25% applied by the abolished Revaluation Index of Pensions (IRP) approved in the 2013 reform, the gap reflecting the evolution of the average Minimum and average pension includes the effect of new pensions, which are bigger year after year, as a result of careers being longer and longer, with higher salaries, thus generating more rights in the future. the retirement. At this point, it should be remembered that new retirement filings have seen significant revaluations in the last decade, nearly 10%. The new pensions totaled €1,502 per year in 2010 (1,393.4 € per month) and ten years later these salaries had risen to €21,392 per year (1,528 € per month). These salaries are on average 20% higher than pensions that stop being paid due to the death of the beneficiary. While if we try to break down the data on average salaries in the same way, it can be seen how the total of €2097.1 per month (€25,165.5 per year) offered by the National Institute of Statistics for 2020 does not reflect the reality of the labor market after a major financial crisis. Statistics also realize that the most common salary in Spain is 18,480 euros per year. So the new pensions in these years were similar to workers’ compensation. This is the main contributor to the gap between the average salary and average pension rise in the past decade. To name a few, these numbers are just the tip of the iceberg of one of the most complex and profound problems facing Spanish society. The precarious salary and proximity to the arrival of the “baby boomers” are both directly related to the future and financial health of the pension system. It is this complex scenario that has forced the government to carry out a pension reform, as required by Brussels, which should be completed next December. Today, Europe is not convinced of the mechanism that will replace the sustainability factor, or MEI, or the resignation of Minister Jose Luis Escriva to extend the years considered for calculating the pension from 25 to 35 years. The reform proposed by the head of Social Security does not guarantee the sustainability of the system, does not introduce adjustment mechanisms, and its changes mean spending only. This is what the community authorities believe, who are putting pressure on the pension manager to adopt cutback measures in a system that pays ten million pensions and must pay each month nearly 11,000 million euros to pay their salaries.

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