Key dates of the new pension reform

The second phase of pension reform goes into effect this Saturday, April 1, although a good number of its measures are already in place or will be in place throughout this year, 2024, 2025 and 2026, as the case may be. These are the key dates and changes to watch out for.

Measures in force

One of them is the new decree on Mechanism of intergenerational equality (MEI), whose goal is to progressively increase contributions to the pension fund by increasing the contributions of companies and workers. Real the overestimated price of 0.6% will rise to 1.2% in 2029, at the rate of one tenth per year and with the following distribution: 1% paid by the company and 0.2% paid by the worker. That inflated price will remain at 1.2% from 2030 to 2050 and may increase automatically if pension spending exceeds 15% of GDP.

A path to improvement minimum contributory pensions and ensure that, starting in 2027, they do not fall below the poverty threshold calculated for a household consisting of two adults. Therefore, taking the development of the minimum pension with a dependent spouse as a reference, they will gradually increase between 2024 and 2027, above the average revaluation of pensions, therefore above the CPI. The goal is for the minimum old-age pension with a dependent spouse to reach at least 16,500 euros per year by 2027, 22% more than now.

The non-contributory pensionsfor its part, it will also grow above the average revaluation pensionsuntil approaching 2027 with 75% of the poverty threshold calculated for a single household.

Measures that will be activated in 2023

Other measures foreseen by the reform will enter into force during this year. So on May 17 The changes made by the Government in arrangement of care for temporary incapacity.

According to the text of the pension regulation, mutual Social security employees will no longer be able to contact the National Institute for Social Security (INSS) in the event that public health rejects their registration proposal. They will be able to go to the INSS only if they do not receive a response from the health inspection of the health services to the proposal for discharge, but they will not be able to if it was refused.

Another pension reform measure that comes into force this year, or rather next year October 1is one who thinks about contribution of students in exercises training or external academic internships. In addition, those who have been in such a situation in the past will be allowed to calculate contributions for periods of training or non-work and academic practice up to a maximum of two years.

Measures that will enter into force in 2024, 2025 and 2026

The reform includes another series of measures that will come into force in the next three years.

So, in in 2024 will take effect annual revaluation of maximum bases and from gender gap complement depending on the CPI. In the case of maximum bases, a fixed amount of 1.2 points will be added to the CPI between 2024 and 2050, while the gender gap supplement will increase by an additional 10% in the 2024-2025 biennium.

In it in 2025 will take effect new solidarity quota on wages that exceed the maximum base, which will be applied by salary grades until 2045. At the end of that period, the contribution rate will be 5.5% for those with a salary between the highest base and 10% more; 6% for salaries that exceed the highest base between 10% and 50%; and 7% when the salary is higher than the highest base by 50%. This joint compensation will not apply to self-employed workers.

It will also enter into force in 2025 increase in maximum pensions with the annual CPI plus an additional increase of 0.115 cumulative percentage points each year until 2050, which will mean an increase of approximately 3%. From 2051 to 2065, there will be additional increases so that in 2065 the highest pension has cumulatively increased by 20%.

And in January of the year in 2026 one of the measures that once caused the most controversy will enter into force: extension of the pension calculation period. The reform will gradually introduce a dual pension calculation model that will allow a choice between the last 25 years of contribution experience or 29 years of contribution experience, rejecting in this case the two worst ones, so that in practice the calculation in the latter case will be 27 years. years.

This new option will be introduced gradually, from 2026 to 2037, the year in which 29 years (minus two) will be fully used.

Until 2040, it will be possible to choose between this option and the last 25 years, while between 2041 and 2043 the 25-year option will grow at a rate of six months per year, from 25.5 years in 2040 to 26.5 years in 2043 .to be able to choose between this period or 29 years (minus the worst two).

From 2044, you will no longer be able to choose, and the pension will be calculated with 27 effective years of contributions (29 years minus the two worst). Ex officio, although there are two alternatives, the social security will always apply the most favorable for the worker.