Agreements ‘reward’ retirement before 65 for 701,000 workers
Collective agreements and retirement clauses are moving in the opposite direction to the Social Security regulation, with a striking upturn in retirement bonuses before the age of 65. These clauses, which serve as a tool for restructuring or renewing workforces through economic rewards or bonuses, have reached more than 700,000 workers in one out of every five collective agreements in force, according to data from the Ministry of Labour and Social Economy.
This is 85% higher than at the height of the pandemic, when 378,000 employees were covered by this clause. This increase reflects a trend in the labour aspects of retirement planning that is in line with the progressive ageing of the working population. ‘The application of retirement incentives in Spain shows a growing trend, both at state level and in collective agreements,’ says Alberto Novoa, a partner in RocaJunyent's labour department and a member of the board of directors of labour lawyers (ASNALA), in conversations with elEconomista.es.
He also points out the loss of experience in the workforce, as well as the high cost of early retirement in the pension system of these practices due to the vicious effect of the loss of social contributions that the Administration ceases to receive.
‘Early and partial retirement are popular options, and supplementary pension plans are gaining ground", Novoa ranks. Regulation has also shifted social provision into the realm of collective bargaining. The best example is the recently created plan in construction, which in nine months is already the largest in Spain and was agreed by agreement in 2023.
‘Collective agreements play a crucial role in the implementation of these incentives, especially in sectors with physically demanding jobs. However, the coverage and type of incentives can vary significantly depending on the sector and the company,’ says the lawyer.
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