The Minimum Wage increases almost triple than the lowest pensions in 10 years

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The worker quotes and the increased employment They are decisive to continue guaranteeing the support of the increasingly expensive public and pay-as-you-go pension system, which will face critical moments in the coming years due to the arrival of the large generation of the ‘baby boom’ at retirement age. They are today’s youth, with especially low wages, those who must contribute now and must continue to do so in the future to maintain the retirement, temporary disability and widowhood benefits of their parents and grandparents. However, the ratio of barely two workers per pensioner will make it very difficult to achieve the goals and alternative and necessary routes They will be aimed at allowing a smooth entry of immigration and measures to encourage birth rates… and that will also have effects.

The context does not invite optimism. Thus, up to 2.9 million wage earners under the age of 30 have salaries, based on the contribution bases provided by the Ministry of Inclusion, Social Security and Migration, which it directs. Jose Luis Escriva, which on average stand at 1,400 euros per month in 12 payments. However, there is a very high percentage of wage earners, especially those under 24 years of age, who have income from work of barely 1,000 euros -even less for part-time contracts-, the equivalent of Minimum Interprofessional Salary (SMI).

The salary of up to 1.8 million workers, according to statistics from the Statistics National Institute (INE) is around the SMI, which this year is set by law at 1,000 euros. Its amount, clearly insufficient to live with some dignity in most cities, has not stopped increasing in recent years, especially since 2019, but compared to the payroll of many pensioners it is even attractive. Starting from the basis that minimum pensions are received by those who have contributed for at least 15 years, but little more, these have increased by 15% in a decade, compared to 56% that wages have increased, almost three times more.

The usual complaint, at least the feeling, of retirees who have contributed for three or more decades is that they are ‘giving away’ part of their pension. But this is the public distribution system, which is reproduced in other countries: “Today for you, tomorrow for me.” A look at the statistics provided by Social Security shows that in the last ten years the number of pensioners who need a minimum supplement to reach the legal minimum pension has hardly changed, 1.42 million in 2012; 1.35 in 2019 and 1.27 in 2022.

This means that the rise in salaries barely modifies the number of minimum pensions and that there will always be around 20% of these small benefits within the system. According to statistics, 26% of pensions were low -minimum- in 2012, six points less than in September 2022. Regarding the amount, it is curious

s that the lowest pension barely exceeded 515.5 euros, compared to the increase in the plan proposed by rond

Pensioners, pension perceptions and average pension by pension

Grades

Unit: euro

PM: €9,081.80

Source: lainformacion.com

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