Thursday, November 30, 2023

Change in pension calculation from October

Next October 1 is the day when the calculation of pensions will change in relation to part-time contributions due to the new change in the Social Security Law. This change will measure contributions as a whole day in calculating the retirement pension, as well as benefits for permanent, temporary disability, birth and child care.

The change made in article 247 of the Security Law establishes that in article 26 of Royal Decree-Law 2/2023, on March 16, “to accredit the contribution periods necessary to trigger the right to “Benefits will be taken into account for the different periods during which the worker remains registered in a part-time contract, regardless of the length of the working day in each of them.”

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Previously, workers working part-time or part-time could only contribute as much as half a day’s work for each working day, which meant that to contribute for a full day they had to do the two days work. This indicates, within the legal framework, that they must work longer effectively to contribute to retirement.

The new variation, as published on its website by BBVA, means that the entire part-time contribution period is taken into account “to calculate the credited contribution period to set the applicable percentage of the regulatory basis to determine- is the retirement pension.” the length of the work day.

A law against inequality

Royal Decree-Law 2/2023 combines several urgent measures aimed, among other things, at increasing the rights of pensioners and reducing the gender gap. These changes will contribute to the relief of this inequality which, as considered by the provisions of the Court of Justice of the European Union (CJEU) and the Constitutional Court (TC), up to 75% of part-time working women.

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This change was previously used by SEPE, which measures the contribution of part-time contracts as one day of work to calculate the amount of their unemployment benefits.

Nation World News Desk
Nation World News Desk
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