How will part-time work be equivalent to a full day of contributions?
Puigverd Assessors details how part-time work will be equivalent to a full day quoted
24/10/2023
Since last October 1, through RD Law 2/2023 that modifies art. 247 of the General Social Security Law, a substantial reform has come into force in the labor framework related to part-time work.
This essential change establishes that part-time work will be equivalent to a full day of contributions for the purposes of calculating the periods of contributions for the recognition of retirement pensions, permanent disability, death and survival, temporary disability and birth and child care.
For all these cases, the periods quoted for whole days will be taken into account, regardless of the length of the day worked in each of them, since from this date, part-time work is equated to full-time work, effects of the calculation of the periods necessary to qualify for benefits, the so-called waiting periods.
This modification is imposed by 2 rulings from the Supreme Court that declare unconstitutional and null the fact that part-time working hours paid less due to its negative impact, particularly for women, who are the majority who have part-time contracts. This change is based on current labor laws, which seek to improve employee conditions and promote a more equitable distribution of social benefits.
With this new equivalence, part-time workers will see an improvement in their social rights and benefits, since their contributions to Social Security will be considered as if they had worked a full day. This implies tangible advantages such as better health coverage and an improvement in their pensions.
The application of full-time contributions for part-time workers is retroactive. The change would affect periods worked part-time before and after October 1, 2023 for the purposes of accessing and calculating Social Security benefits. However, this modification would not apply retroactively to causal events prior to the aforementioned date.
Companies could see an improvement in talent retention and greater satisfaction of part-time workers, as this reform can be perceived as recognition of their effort and contribution, regardless of the time spent at work.
This essential change establishes that part-time work will be equivalent to a full day of contributions for the purposes of calculating the periods of contributions for the recognition of retirement pensions, permanent disability, death and survival, temporary disability and birth and child care.
For all these cases, the periods quoted for whole days will be taken into account, regardless of the length of the day worked in each of them, since from this date, part-time work is equated to full-time work, effects of the calculation of the periods necessary to qualify for benefits, the so-called waiting periods.