The evolution of prices this year will increase by more than anticipated the bill for the pensions. When they approved the budget, it was established an increase of 1.6%. But the CPI at the end of this year is going to exceed that percentage. Will come in December to 1.9%, according to the official forecasts of the Government. Therefore, if you want that pensioners do not lose purchasing power, something that has been committed repeatedly by this Government, will have to compensate them. How much do you supposed that? 385,8 million, at the rate of 128,6 million for each tenth of a deviation, according to sources in the Ministry of Labour.
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This update mechanism and revision of pensions was in force until the reform of 2013. But with a difference, then took the data of the CPI for November as a reference to check if the pensioners had lost purchasing power throughout the year and not December, as it is likely to do this year, pointing to Work. Taking the prices of the last month of the year, the more likely it is that this bill for the Social Security is lower because the forecasts indicate that CPI will be lower in December than in November.
Three tenths more of the CPI
keep in mind that to offset the loss of purchasing power has a cost greater than that paid retroactive to that pensioners will receive in January, according to the tradition followed while it was in effect the previous law. Why? Because when you calculate the upside of 1.6% of the pension to 2019, will be made on the course of this year, pensions rose by 1.9% and not 1.6%. That is to say, over the next year the deviation of prices from 2018 costs other 385,8 million.
This clarification has come to the end of the intervention of the Minister of Labour, Magdalena Valerio, in the informative breakfast organized by Europa Press. In it, Valerio has not cleared this doubt, which have been clarified later on your computer.
In this intervention, the minister has advised that he has the intention to take forward the measures provided for in the budget plan: unemployment benefits for over 52 years of age and paternity leave of eight weeks, among others. “In life you always have to have plan A and plan B. The B is to recover certain rights that were eliminated by decree. We have prepared a battery of measures that will in budgets, or by decree”.
The Social Security shortfall should be solved in 2022
During his speech, the minister of Labour also warned that Spain should reach out to 2022 or 2023 with the pension system healthy, because that will be when you will produce a greater number of retirements of the baby-boom generations. “It is vital to strengthen the financial balance of the system”, said the minister, who has gambled by rearranging income and expenses, so that social policies such as maternity benefits and paternity (which represent a cost of 2,500 million euros) are paid through the State.
By the side of the revenue, Valerio has been recognized that the tax of financial transactions, with the anticipated raising about 850 million euros per year to finance the pension system, only give you to an “appetizer discreet”. “You have to inject income because it is not worth only with the tax of financial transactions”, has pointed out.
In any case, has insisted that there are about 19 million people working and the month-to-month pension is paid with what they quoted the workers each month.
“The problem we have to face the payment of the pension extraordinary of June and December, and that is where we have to bet on more employment, more quality, more salaries, quotes and by more people working,” he added.
