The latest pension reform is taking shape. The Secretary General of the UGT, Pepe Álvarez, advanced the support of the PP for the latest pension reform, which includes measures in favor of partial and flexible retirement, the collection of wages and pensions, as well as the relief contract formula used by the industry. “I want to thank the PP because, beyond other issues related to this subject, it is committed to effectively supporting the latest agreement on pensions,” Álvarez explained in his speech.
From Genoa, they consider that the content agreed by the social dialogue this summer is consistent with what the PP defends. However, popular sources still do not reveal the meaning of the vote of the popular formation in the Congress of Deputies. The PSOE needs a simple majority in the Lower House. Thus, they neither confirm nor deny the announcement revealed by the union leader during the Confederal Commission of the union held in Barcelona.
Reform of partial pensions with relief
The pact, signed this summer, includes measures aimed at making salary and pension compatible through the different retirement arrangements. One of them is the extension of partial retirement with replacement contract to the rest of the sectors with a validity of four years. This legislation is specific to the manufacturing industry and would now be extended to more sectors.
The pact concluded this summer extended the duration of recourse to partial retirement from two to three years (from age 62) for workers who have 33 years of contributions and six years of seniority in the company. It maintains the possibility of reducing the working day up to a maximum of 75% in the last two years of partial retirement and a new section is incorporated that allows a reduction of 20% and up to 33% in the first year. The replacement must be a worker with a permanent, full-time contract.
The contribution of the company and the semi-retiree will gradually increase in the following ways: 40% in 2025; 50% in 2026; 60% in 2027; 70% in 2028 and 80% in 2029, according to the text. In exchange for benefiting from this tool, the company must have at least 75% permanent contracts.
The urgent route: last resort
The government already approved last year “at the last minute” the one-year extension of this type of pension, which now risks falling into limbo. Every year, partial retirement with relief is extended with the broad support of political groups, including the abstention of the PP.
Currently, two scenarios are possible: an extension of current legislation or accelerate the recent reform process with an urgent royal decree to resolve an essential measure for businesses and unions.
He parliamentary process It first goes to Congress, with the presentation phase, the commission and the plenary session; then to the Senate, where he followed the same path. Once this law has been processed, if the Executive manages to move it forward, the new regulations would replace the extension of the current legislation currently being reformed.
