Sanchez tied the rise in pensions and the minimum wage to the formation of a new Government

The Executive functions of Pedro Sánchez has decided to defer the rise in pensions and the minimum interprofessional wage (SMI) until the formation of a new Gov

Sanchez tied the rise in pensions and the minimum wage to the formation of a new Government

The Executive functions of Pedro Sánchez has decided to defer the rise in pensions and the minimum interprofessional wage (SMI) until the formation of a new Government. Will wait to celebrate an inauguration to leave the decision to the next Cabinet, according to several sources of the Executive. “We are confident that this will not go beyond January,” and point to those same sources. The plans, however, continue to be to raise the pension by 0.9%, to revalue the salary of the officials 2 per cent, and revised upwards the SMI.

The political blockade has ended up affecting pensions, the minimum wage and remuneration of the officers. Already weeks ago that the minister of Labour, Magdalena Valerio, had publicly expressed his doubts about the possibility that a functioning Government could raise pensions by 0.9% of the announced to the European Commission in the budgetary plan for 2020. The criterion normal of the legal profession of the State is that an Executive who does not have full functions may not make budgetary decisions that commit the next. And, finally, that has weighed on the decisions that traditionally have been adopted in recent years when it has been given to this circumstance.


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On this occasion, in addition, there are other reasons of a political nature. The decision is an added pressure to the parties who are in doubt whether to support a Government headed by Sanchez. The will to defer these increases it is the policy because the Executive itself that was found last fall a loophole to unblock the funds in the system of financing the autonomous regions, despite being in functions.

the plans of The Executive for the pension pass through to delay the revaluation despite the fact that I could have gone up 0.25%, as set out in the current Social Security law, as written from 2013. This rule was suspended in 2018 and 2019, but the next year, as it was not approved the reform was to link the annual improvement of the pensions to the rise in the actual CPI, would be in force. To avoid such a rise of 0.25 per cent, the Executive has decided to approve a decree law to suspend the norm to expect that in a few weeks an investiture. When you have a Government formed will be able to upload that to 0.9%, which will have retroactive effect from 1 January.

Sources of Working explain that rise now to 0.25% to then increase 0.65% remaining is a waste of resources unnecessary. However, neither is aware that the annual increase of 0.25% was highly criticized by the PSOE when he was in the opposition. Then promised repeatedly to repeal the rule which imposes that increase when there is a shortfall in the Social Security, as it occurs since 2011. The Executive socialist renewed that commitment when he returned to the Government. So apply now, such a rise would be a bad time political that Sanchez does not seem willing to take. Following the same criterion, the Executive's not going to play now the basis of the quotation: or the minimum (always linked to the minimum wage) nor the maximum.

The same thing happens with the salary of the officials. The Government will only approve the raise agreed upon of 2% to public employees when they constitute an Executive with warranties. In this way, the salary enhancement nor you will see the light with the entry of the new year, but will have to wait a few days or a few weeks until it comes out on a endowment. The minister of Territorial Policy and Public service functions, Luis Planas, has already explained some weeks ago that, legally, a functioning Government could not carry out any such increase. But he clarified that this is to be accrued on January 1.

By the side of the SMI had not so many doubts legal to approve it. Although there are benefits and aids that are linked to their evolution, it seems that the Law of the State does not see obstacles. Here, however, the problems stem from the negotiations to form a new Government and the demands of the social agents. The PSOE and United We are talking to set an objective of SMI for this legislature: the 60% of the average wage. However, on the other hand, trade unions and employers demand that you have with them and not do like last year, when Pedro Sanchez and the leader of we Can, Pablo Churches, agreed to an increase in the floor wage and gave no margin whatsoever to the social dialogue.

To 2020, point sources of Work, the plan is to extend the 900 euros monthly current and secure the commitment of the new Government to negotiate quickly with trade unions and entrepreneurs, a path that takes the SMI to that 60%. The responsibility of carrying out these new negotiations can be put on a minister of the United we Can if, as has been published, Yolanda Diaz just by accessing the portfolio.

Date Of Update: 27 December 2019, 02:00