The Constitutional Court Annuls The Method Of Calculating The Retirement Pension For Part-Time Workers

Author:Mr José de Gea
Profession:Marti & Associats

The Judgment of the Constitutional Court of July 3, 2019 has annulled the current system of calculation of retirement pension for part-time workers, on the understanding that this system implies a violation of equal rights for full-time employees and part-time employees, as well as indirect gender discrimination against women.

The aforementioned calculation system had two essential characteristics, which were the following:

The regulatory base of the retirement pension for the part-time worker was calculated according to the salary actually received by that employee, and this amount was naturally lower than that of the full-time employee. The so-called "partiality coefficient" was applied to the regulatory base resulting from the previous point, which also implied a reduction in the number of years of social security contributions calculated for the purpose of retirement pension. As a result, the part-time worker suffered from a double negative impact on his retirement pension. On the one hand, his/her lower salary entailed a reduction of its regulatory base for the calculation of their pension. And, on the other hand, the "partiality coefficient" meant a reduction in the number of years of contributions for the calculation of said pension

The cited Judgment of the Constitutional Court of July 3, 2019 establishes that the reduction of the regulatory base derived from the lower salary received by the part-time employee is a natural and reasonable consequence inherent to this type of employment contract.

However, it understands that the "partiality coefficient" implies disproportionate and unjustified additional damage, which undermines the right to equal treatment for both full-time and part-time...

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