Pension entitlement overhaul could mean part-timers no longer have to work twice as many years as full-time employees
Sunday, July 28, 2013 @ 6:35 PM
SECRETARY of State for Social Security Tomás Burgos says part-time workers should not have to be 'paying into the system' for as long as full-time employees to qualify for a State pension.
At present, to be eligible for any type of retirement pension, a person needs to show they have been on the Social Security system – either as a employee on a contract, as a registered self-employed worker, signed on with the dole office, on maternity leave or a State sick pension – for 15 years.
They then have to be in this situation for a minimum of 30 years – soon to rise to 35 years – to qualify for a full pension based upon their earnings over their working lives.
As contributions are based upon a 40-hour working week, this is then calculated on a pro-rata basis for those working part-time, meaning that a person who has always worked 20 hours a week will need to be paying into the system for 30 years to get a pension and 60 to 70 to get a full one, whilst people who have been working for 10 hours a week all their lives need to be 'in the system' for 60 years to receive anything and between 120 and 140 years to qualify for the full amount.
Read more at thinkSPAIN.com