Payroll services Spain
The Spanish government approves by royal decree law one of the most important reforms of the legislature: that of the pension system.
The pension can be calculated either with the last 25 years of contributions or with 29 years of contributions, from which the two worst years can be excluded, so that in practice the calculation in this second case will be 27 years.
A contribution is established for the part of the salary that does not pay contributions because it exceeds the maximum contribution base.
The maximum contribution bases will rise annually by the CPI plus a fixed amount of 1.2 points between 2024 and 2050.
Maximum pensions will be revalued year by year with the annual CPI plus an additional increase of 0.115 percentage points cumulatively each year until 2050, i.e. an increase of approximately 3%.
A convergence path is established for minimum contributory pensions to ensure that, from 2027, they will not fall below the poverty line calculated for a household of two adults.
Non-contributory pensions will grow to converge in 2027 with 75% of the poverty threshold calculated for a single-person household.
In conclusion, the reform is the reinforcement of the revenue structure, so that the system can withstand the challenges it faces. This reform substantially improves minimum pensions and corrects contribution gaps.
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