The change that benefits part-time workers

by time news

2023-10-15 08:28:28

Labor legislation is not for life. As various groups exert pressure, some regulations that once seemed untouchable are being modified. One of the latest developments is related to part-time employees, whose performance is equal to that of full-time workers starting this October for the purposes of the pension they will receive in the future. With the help of the Adecco and Iberley Foundation, we explain the latest developments in this matter, how they affect you and what impact they may have on your future contributory pension.

As of October 1, 2023, Royal Decree Law 2/2023 has come into force, which includes the modification of article 247 of the General Social Security Law. This change entails the following: «For the purposes of accrediting the contribution periods necessary to cause the right to retirement benefits, permanent disability, death and survival, temporary disability and birth and care of a minor, the different periods during which “the worker has remained registered with a part-time contract, regardless of the duration of the work carried out in each of them.”

The amount

160,100 Basque workers have part-time work, 16.4% of those employed, of which 123,000 are women.

Will part-time work be equivalent to full-time for contribution purposes?

Yes, part-time work will begin to count as a full day of contributions for the recognition of retirement pensions, permanent disability, death and survival, temporary disability, birth and care of a minor. In other words, one hour contributed will count as a full day to calculate the retirement pension and the aforementioned contributory pensions.

Novelty

An hour contributed will count as a full day to calculate the retirement pension and other contributions.

Why is part-time contribution equated with full-time contribution and who benefits?

This is a measure that is implemented as a result of two rulings by the Constitutional Court, which declared the unconstitutionality and nullity of part-time working hours contributing less for the aforementioned cases. Until now, a partiality coefficient was applied to calculate these benefits and a part-time employee had to work two days for them to count as one in the contributions.

Therefore, this modification is being implemented to alleviate the inequality faced by many people who work part-time, particularly women, who had to work longer to meet the years required to request 100% of their pension.

Incidence

The Government estimates that this change will benefit around 2 million workers, especially the female group.

The Government estimates that this change will benefit around 2 million workers, especially women. This is an initiative that is part of a package of measures to reduce the gender gap.

Is the equation of part-time and full-time contributions retroactive?

Not for the purposes of benefits already granted. That is to say, a person who is retired today and has contributed part-time for part of his or her working life does not have the right to go to a Social Security office and demand that his or her pension be raised. Nor does someone who is active and at the time has received, for example, a benefit for the birth of a child. But if someone retires tomorrow, the new coefficients will be applied and their pension can improve significantly.

Future

Social Security must interpret all days worked as if they had been full-time

What happens to the days already quoted?

From now on, Social Security must interpret all days worked as if they had been full-time, regardless of whether they were worked before the entry into force of the reform or later. Although only for the purposes of new benefits, not for those already assigned.

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