A 25-year-old employee will receive 20,000 euros more in retirement with the new pension reform, according to Escrivá

The minister figures between 10 and 37 cents the increase in costs per hour and worker for companies.

A 25-year-old employee will receive 20,000 euros more in retirement with the new pension reform, according to Escrivá

The minister figures between 10 and 37 cents the increase in costs per hour and worker for companies

MADRID, 15 Mar. (EUROPA PRESS) -

The new pension reform will mean an increase of almost 20,000 euros in the future retirement of 25-year-old workers and of almost 5,000 euros in employees who retire in 2027, according to the projections of the Ministry of Inclusion, Social Security and Migrations.

As can be seen from the reform presented this Wednesday in the Toledo Pact Commission of Congress by the Minister of Inclusion, José Luis Escrivá, the reform already agreed with Brussels and within the coalition government will imply a "substantial" increase in the pension, largely due to the progressive increase in the Intergenerational Equity Mechanism (MEI).

This last mechanism will promote an increase at the rate of one tenth until 2029, going from 0.6% to 1.2%. The minister has placed emphasis on these figures, which, as he explained, contrast sharply with the calculation estimated with the old sustainability factor.

With this last element, Escrivá said, the workers' entry pension would have been reduced by 2% in the case of a retiree in 2027 and by 10 points if the worker was currently 25 years old.

The head of Inclusion and Social Security has recognized that the reform will mean an increase in labor costs per hour worked, which currently stands at 23.4 euros, of which 6 are allocated to social contributions.

Specifically, Escrivá has pointed out that the MEI will imply a first increase in the labor cost of 10 cents, up to 37 cents, so that the cost will be around 23.8 euros. This increase, explained the minister, would go directly to the contributions, so that the company would pay 6.37 euros per hour worked on average. "It is not a dramatic increase in labor costs," the minister emphasized.

In line with this, José Luis Escrivá has stressed that Spain has a "relatively moderate" level of contributions, for which reason he has ruled out that the country loses competitiveness with the reform, since it is a plan "distributed over time, very prudent, very gradual and will not at any time put the productive fabric of any company in Spain at risk.

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