Two of Spain’s main trade unions have given their backing for the government’s proposed reforms to the country’s public pension system, which are expected to progress through parliament in the coming weeks.

The reforms, which also received the support of the European Commission, aim to increase the amount of money in the public pension system to sustainably deal with the ageing population and increasing number of retirees.

Included in the reforms is 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, and a rise in the social security costs on companies for high earners.

Furthermore, 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.

The agreement between Minister of Social Security, José Luis Escrivá, and the leaders of the trade unions CC OO and UFT was made today (15 March), with Escrivá stating that the reforms would help ensure the sustainability of the public pension system.

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

The proposed reforms are set to be approved by the Spanish Cabinet tomorrow (16 March), before moving onto parliament to be signed into law.

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