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The government assures Brussels that salaries will “recover” and will grow at an average rate of 3.4%


Salaries will pose no threat to inflation, the increases in the agreement barely exceed 2.5% and the government’s forecast is somewhat higher for next year, 3.4%. The increases will move in the inflationary scenario, around 6%, according to the Bank of Spain.

The plan sent to Brussels suggests that pensions will grow by 8.5% next year and warns of a record increase in contributions of more than 8%, which will be driven by a pivot in employment taxes, due to the increase in the cap rate basis. 8.6% plus 0.6% growth includes Equity Mechanism (MEI). New surcharges were adopted without agreement with the companies which predict a long period of incommunicado detention.

According to the executive, income from contributions will reach 152,075 million, an 11.5% growth over the budget for this year. However, it highlights that income from premiums will exceed 3,723 million to those budgeted in 2022, which in 2023 will grow by 8.4%. This growth is influenced by the increase in maximum bases, by the MEI representing a 2% increase, the 2.6% growth in the number of contributions, according to the Executive’s report, as well as the expected 3.4% salary increase.

By 2023, Social Security will record expenditures of more than 200,000 million to meet the pension-link bill CPIAt a cost of about 20,000 million.

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