Signals of the future of work (Mar. 2023)

Spanish government and trade unions reform the pension model

In March, following an agreement reached between the Spanish government and the country’s largest trade unions, the Council of Ministers approved the public pension system reform. Under this reform, pensioners will be able to choose between two methods for calculating their pensions: the current formula, based on the last 25 years of contributions, or a new one that takes into account the last 29 years of contributions, with the worker being able to discard the two worst years. The most noteworthy aspect of the reform, however, are the measures aimed at increasing the system’s income. Firstly, it includes a progressive “