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The stimulus package that Spain will send to Brussels envisages limiting the types of employment contracts to three

The stimulus, transformation and resilience plan that the government will send to Brussels in April contemplates labor market reforms that include simplifying the types of contracts in Spain to a total of three, in order to reduce market duality. According to the document of more than 200 pages in which the reforms and investments of the Plan that the President of the Government, Pedro Sánchez, will present to the Congress of Deputies, the three types of contract would be “ stable ” for the whole of the activities, another “temporary” for those of this nature and a “training” for integration, in particular, in the labor market.

“The reduction of duality is the fundamental element to align the Spanish labor market with the most advanced of our environment, to strengthen investments in human capital and to reduce precariousness and social gaps”, argues the executive in the Plan. For this reason, a reform program is proposed which aims to reduce temporary employment, structural unemployment and youth unemployment until reaching the European average.

This point also includes the impetus for new instruments of “internal flexibility” as an alternative to dismissal and high temporary work, through mechanisms for adjusting working time in the face of cyclical or extraordinary drops in demand and the processes of structural transition accompanying the reconverted sectors. The government is also considering in its labor market reform plan the guarantee of decent work through adequate regulation of teleworking, distributors and subcontractors of digital platforms, as well as the modernization of collective bargaining mechanisms.

This reform, as stressed by the executive, must be tackled within the framework of social dialogue, aimed at reducing structural unemployment and youth unemployment, correcting duality, improving human capital, modernizing collective bargaining. and to increase the effectiveness of public employment policies. In addition, a boost will be given to active employment policies, orienting them towards the training of workers in areas which require the transformations required by the economy and, on the other hand, the digitization of the SEPE will be a major reform which will contribute to the modernization and efficiency of employment services.

Investment in public policies for a “dynamic, resilient and inclusive” labor market reaches 2,363 million, with a focus on youth employment, policies to support the activation of employment and new projects territorial rebalancing and equity. For its part, the pension reform that the Government intends to undertake aims to ensure the financial viability of the system in the short, medium and long term, to maintain purchasing power, to preserve its role of protection against poverty and to guarantee intergenerational equity.

Thus, and on the basis of the approval of the recommendations of the framework of the Pact of Toledo, the government proposes the implementation of a package of additional measures which will be brought to social dialogue and will include the separation of funding sources, the implementation of implementation of the implementation of a pension. revaluation mechanism guaranteeing the maintenance of purchasing power or the continuation of the process of approximation of the effective retirement age to the legal age by incentives to delay retirement and the adjustment of the elements of distortion in the regulation of early retirement.

In addition, the adaptation to the new professional career models of the calculation period for the calculation of the retirement pension, the integration and the convergence of the various pension systems, such as those of the self-employed, with a new system of contributions to Social Security according to real income and the modification of the maternity pension supplement by a new conception, with the aim of compensating the cost that the birth and the care of children have for parents, mainly for mothers. The revision of the complementary social security system is also proposed, promoting its development in the business sector and “adaptation” of the system’s maximum contribution base.

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