Social Security Change That Will Impact Part-Time Workers In Spain
Spain News
Published: 26 September 2023 15:57 CET
On October 1st, 2023, Spain will witness significant changes in its social security landscape, particularly impacting part-time workers across the nation.
These alterations stem from Royal Decree 2/2023, set to take effect in just a week. Notably, this decree will have far-reaching consequences for the social security contributions of approximately 2 million Spaniards engaged in part-time employment, a demographic largely composed of women.
"With the modification of article 247, part-time work is equated with full-time work for the purposes of calculating the periods contributed for the recognition of retirement pensions, permanent disability, death, temporary disability, birth and care as a minor, since the periods contributed are taken into account regardless of the length of the working day carried out in each of them."
One of the pivotal amendments to be implemented is the redefinition of a part-time workday to be equivalent to a full-time workday concerning the accumulation of days, months, or years required for Spaniards to claim a pension or access specific welfare benefits like temporary incapacity or family caregiving support.
Before these changes, Spanish workers needed to accumulate 13,595 days to qualify for a full pension upon retiring at 65, equating to 37 and a half years of contributed work. To access the minimum pension after 15 years of labour, individuals were required to have worked for a minimum of 5,745 days.
"In short, the periods of activity are counted as full days, regardless of the worker's working day -partial or full-day. Therefore, the global bias coefficient and the proportionality rules will be eliminated."
Previously, part-time work was considered a fraction of a full day, based on the number of hours worked. However, under the forthcoming legislation, one day of part-time employment will be treated equivalently to one day of full-time work. This transformation disregards the number of hours worked on any given day, as long as it constitutes part-time employment, as stated on the Spanish social security's official website.
"For the purposes of accrediting the contribution periods necessary to cause the right to retirement benefits, permanent disability, death and survival, temporary disability, birth and care of a minor, the different periods during which the worker has remained registered with a part-time contract, regardless of the duration of the work carried out in each of them."
It's important to note that this change doesn't necessarily guarantee that part-time workers will receive the same pension as their full-time counterparts, as gross salary also plays a determining role. Nevertheless, it significantly impacts how swiftly and feasibly part-time workers can accumulate the required contributions to access a full pension.
This measure represents another stride taken by Spain's Socialist-led government to address the gender pay and work rights disparity between men and women, given that women in Spain are more likely to opt for part-time employment to balance work and childcare responsibilities. Recent initiatives, such as family leave schemes and financial support for childcare costs, underscore the government's commitment to gender equality and family support. Spain's introduction of the EU's first paid menstrual leave further solidifies its dedication to progressive labour policies.
Interestingly, statistics indicate that up to 57 percent of new employment contracts signed in Spain in August 2023 were for part-time positions, emphasising the significance and timeliness of these social security reforms.
In conclusion, as Spain prepares for the implementation of Royal Decree 2/2023 on October 1st, it is poised to bridge the gap between part-time and full-time workers in terms of social security benefits and pension eligibility, marking a significant step towards greater inclusivity and equality in the workforce.
Source
https://www.thelocal.es/20230926/the-social-security-changes-that-affect-part-time-workers-in-spain
https://www.antena3.com/noticias/economia/trabajas-tiempo-parcial-estos-son-cambios-cotizacion-que-llegan-octubre_20230925651173c798383a00019bf75b.html
