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Important changes to Spanish pension contributions come into force
From Sunday October 1, part-time hours will count as a full day in terms of contributions in Spain
A major change to how pension contributions are calculated in Spain has come into force on Sunday October 1 and will be welcomed by employees and self-employed workers up and down the country.
From now on, part-time and full-time hours will be treated exactly the same when calculating pension contributions for retirement, permanent disability and temporary disability, widow pensions and payments for the birth of a child and care of a minor.
Originally approved last March, this important modification forms the second phase of Spain’s pension reform and greatly benefits part-time workers, the vast majority of whom are women in this country.
The change actually came about after several articles of the pension law were deemed unconstitutional and in practical terms. It means that the same contribution period will be counted regardless of the number of hours worked in any given day.
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According to the unions, women make up almost 80% of part-time staff since they still undertake most of the domestic responsibilities and the old articles of the ‘General Social Security Law’, as it’s officially known, had a “negative impact on the amount of pensions of part-time workers, particularly women.”
For this reason, the Constitutional Court considered it especially detrimental to the female population that one day of contributions for someone with a part-time job counted less than for someone with full-time work.
“In order to prove the contribution periods necessary to cause the right to retirement benefits, permanent disability, death and survival, temporary disability and birth and care of a minor, the different periods during which the worker with a part-time contract has remained on sick leave will be taken into account, regardless of the length of the day worked in each of them,” the new regulations state.
Image: Freepik
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