Changes in pensions from October 1

by time news

2023-09-22 00:21:45

Friday, September 22, 2023, 00:21

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As of October 1, part-time workers will have the same rights, for Social Security contribution purposes, as full-time employees. In reality, there is already a real equality between both groups, although only for the calculation of the retirement pension. Starting next month, equality will reach the rest of the contributory benefits.

That day a legislative modification agreed to in the recent pension reform will come into force. A change in the Social Security Law that will take into account the periods contributed by part-time workers as full days, “whatever the length of the day worked in each of them.”

This criterion has already been applied since 2019 by Social Security when calculating the retirement pension of this group. That change was forced by a ruling from the Constitutional Court, which acted at the request of European justice, and which considered “unconstitutional, null and discriminatory” the method of calculating retirement benefits for part-time workers.

More than 2.8 million part-time workers

But it will not be until October 1 when it officially comes into force. This new scenario benefits the more than 2.8 million part-time workers in Spain. It must also be taken into account that only 10% of these people work part-time of their own free will. Almost half do so because they cannot find full-time employment.

This equalization has very positive consequences for this group of workers, since it directly affects the calculation of the number of years required to be entitled to a Social Security contributory benefit, which is known as the waiting period. Currently that figure is around 15 years, so this group had to work longer to access this type of benefits.

But the regulatory change not only affects retirement pensions, but also the rest of the contributory pensions: permanent and temporary disability, widowhood, orphanhood, in favor of relatives, and the benefit for birth and care of minors.

In addition, the new way of computing the years of contributions also affects the calculation of the percentage applicable to the regulatory base to set the retirement pension.

This 2023 you need to have worked 36 years and six months to access one hundred percent of said base. In this way, part-time workers will have an easier time accessing a higher pension.

The question is what will happen to those employees who retired before 2019. Although this new right will not be recognized ex officio, they have a good chance of obtaining it in court.

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