The Spanish parliament has approved the government’s proposed reforms to the country’s public pension system that will see workers’ pension contributions increase to address the rising number of retirees.

The reforms, which have received support from the European Commission, aim to increase the amount of money in the public pension system to sustainably deal with the ageing population.

According to estimates, the number of retired people in Spain is set to rise from 10 million to 15 million by 2048.

Most of the financial burden expected to be put on highest earners and employers.

Spain’s parliament approved the changes yesterday (30 March) with 179 to 104 votes.

The leftist coalition government pushed through the changes, despite opposition from the conservative opposition.

The reforms are expected to include a gradual 38 per cent increase in the maximum contribution level between 2024 and 2050, with the current level at €4,495.50 per month.

They are also expected to include a rise in the social security costs on companies for higher earners.

The intergenerational equity mechanism will gradually rise, while recipients of the minimum pension will see their pension income rise to 60 per cent of the national median income between 2024 and 2027.

The Spanish government is also planning to increase non-contributory pensions to 75 per cent of the poverty threshold of a single-person household by 2027, while measures aimed at reducing the gender pensions gap will also be introduced.

Two of Spain’s main trade unions gave their backing for the proposals earlier this month.

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