The pension reform has taken a new step forward with the incorporation of medicines that seek to adapt the system to the current needs of workers and companies. Pepe Álvarez, general secretary of the UGT, installed the Partido Popular (PP) to respond to this congressional initiative, underlining the importance of ensuring broad political help for a reform that includes key tools such as flexible partial jubilation, compatibility between salary and pension, and the expansion of the contract relief in many sectors beyond the manufacturing industry. In his statements, Álvarez underlined the need for a political compromise to implement the plan: «I tell the PP that it is clear and that it supports this project, which is crucial for the future of the pension system».
Although the PP has not even confirmed its official posture in front of the reform, sources in the party have reported that the content of the accusation made in the social dialogue is aligned with some of the supporters who have historically defended it. However, the same sources avoid committing whether your party will vote in favor or abstain from the parliamentary debate. For its part, the PSOE, which needs a simple mayor in Congress to advance the reform, maintains expectations of the PP's movements, while trying to consolidate the tools necessary to guarantee approval.
Expansion of the relevo and partial jubilación contract
One of the central points of sentiment is the extension of contract relief, a tool that has been part of the manufacturing industry and is now expanding into other productive sectors. This mode allows workers with a broad job selection to access partial jubilation as they are replaced by multiple employees on indefinite contracts. According to the new appreciation, this scheme will be applied with an initial four-year supervision to evaluate its implementation in new areas.
The reform also introduces significant changes in the conditions of access to partial jubilee. If the period during which workers can acquire this modality is extended from two to three years starting from the age of 62, provided that they accumulate at least 33 years of tariffs and six years of seniority in the company. Compared to the reduction of the working day, there is the possibility of reducing it by up to 75% in the last years of work. Additionally, we've incorporated a new option that allows for an initial reduction of between 20% and 33% in the first year, giving workers more flexibility to plan their transition into jubilation.
Another relevant change is the requirement for substitutes in the relief contract. These will have to be negotiated with an indefinite contract during the full day, reinforcing the compromise with job stability. Similarly, companies wishing to benefit from this modality should ensure that at least 75% of their plant is contracted indefinitely, which seeks to promote greater formalization of work.
Gradual increase in company share price
The recognition also established a progressive increase in the corporate rate associated with the partial jubilation. This increase will apply in successive times: 40% in 2025, 50% in 2026, 60% in 2027, 70% in 2028 and 80% in 2029. These measures can guarantee the sustainability of the pension system in the long term, balancing the needs of workers with the capabilities of companies.
Legislative process and possible scenarios
The Government is now facing the challenge of ensuring that the reform does not clash with the legislative process. In the past, similar measures have required annual extensions, as occurred last year, when the legislature in force on the partial jubilation was extended in an extraordinary way. However, this practice faces the risk of leaving thousands of workers and companies that depend on these tools in legal limbo.
Before this situation, the executable handles two possible paths. For a moment, I might opt for a new extension of the current legislation while the reform parliament is completed. On the other hand, there is the possibility of approving a real emergency decree that allows the most priority measures to be implemented immediately, thus avoiding interruptions in its application.
The parliamentary process, which includes the presentation of the reform to Congress, the debate in committee and in plenary and subsequent passage by the Senate, could extend for several months. Once these phases have been overcome, the definitive regulation must be approved by the Council of Ministers to formally replace the current legislation.
A key step for workers and businesses
The proposed reform seeks to balance the interests of workers and employees, adapting the pension system to the actual reality of the labor market. The expansion of the relief contract and the flexibility of the partial bonus are means that not only benefit the major employees, allowing a gradual transition towards retirement, but also opening up opportunities for the inclusion of young people in the labor market, promoting the relevant generational relief .
For their part, companies, especially in sectors with a high demand for qualified workforce, value these tools as a form of guarantee of the transfer of knowledge and experience between generations. However, some entrepreneurs expressed concerns about the increased costs, arguing that they could generate an additional cost in an already challenging economic environment.
The paper of social dialogue
The reform was the result of a broad process of social dialogue between the Government, trade unions and business organisations. This consensus reflects the importance of building broad to address structural challenges such as population enthusiasm and pension system sustainability. However, the PP's response to Congress will be crucial to ensuring that the reform becomes a reality, especially considering the need for a simple mayor for its approval.
In this context, Pepe Álvarez stressed the importance of overcoming political divisions and focusing on general interests. According to the union leader, this reform not only responds to current needs, but also provides the basis for a fairer and more sustainable pension system for the whole world.
A reform with far-reaching impact
Pension reform represents a significant effort by the government and its social agents to modernize a system that faces challenges from employees due to popular enthusiasm and changes in the labor market. The combination of measures such as the expansion of the relief contract, greater flexibility in partial jubilation and the progressive increase in tariffs seek to ensure a balance between the financial sustainability of the system and the protection of workers' rights.
However, its success will depend on the Government's great ability to resolve the political and legislative difficulties that still persist. With the PP's apoyo still in the air, the development of this reform will be a key indicator of the institutions' ability to build consensus on issues fundamental to the country's future.
