Spain Set to Create Equal Maternity and Paternity Leave

Spain Set to Create Equal Maternity and Paternity Leave

Spanish parliament decided recently that they would agree with a proposal that was put forward by the Podemos Party to standardise both maternal and paternal leave.

Paternity leave for fathers is a welcome addition.

Current laws entitle Spanish fathers to have 13 days off work consecutively, which begins two days before a child is born, fostered or adopted. While fathers of three or more children are entitled to 20 days off it is still much shorter than the 16 weeks of maternity leave that Spanish mothers receive.

The current law does still allow for mothers to transfer up to 10 weeks of their 16 week maternity leave to fathers but this rule is on the way out after it was only used by 2% of couples.

This change in the rules means that Spain is catching up with the rest of Europe and it also allows Spanish couples to have an equal role when it comes to early parental duties. The government will compensate companies for the time that employees spend away from work and this was one of the biggest sticking points for the conservative parties in Spain.

The Popular Party (PP), headed up by the current interim Prime Minsiter of Spain Mariano Rajoy, has been against equal parental leave for some time. They feel that it will cost the government too much. Podemo countered this argument by saying that both the Spanish constitution and EU law forbid discriminating based on gender.

It could be a while until a new government budget is set to accommodate the change given the current political situation in Spain. Given that it could take until a new Prime Minister is elected the rule could soon be overturned if Rajoy and his PP win a majority in the upcoming third election.

What is more likely to happen is that Spain will be ruled by a grand coalition of mostly left-leaning parties that will ensure the ruling stays and that Spain will finally make good on a promise made in 2009, before the country was hit by a double-dip recession and people lost interest in a ruling that would increase government spending.

The ruling comes at quite the coincidental time for Spain as October 21^st marks the day when women begin “working for free” in a crude measurement of the gender pay gap in the country.

The data behind this imbalance comes from information taken from the entire adult population of Spain and the end result is that women are paid almost 20% less than men. Given that the EU and Spanish constitution state that gender discrimination isn’t allowed it is a bit misleading to say that women are deliberately paid less than men.

Another significance of this October 21^st date is that social and cultural norms leave women feeling the need to leave work early or work less so that they can take care of their families. This is another reason that women fail to go after high-paying careers and also stops them from pursuing a tertiary education, which also cuts down on their earning potential.

Now that new fathers are entitled to as much paid leave as mothers it is hoped that this imbalance will effectively rectify itself as time passes.

Brexit Could Leave British Expat Pensioners 50k Worse Off

Brexit Could Leave British Expat Pensioners 50k Worse Off

Brits retiring and moving to Spain and to other EU member states are able to claim the same incremental pension they would receive if they stayed in the UK. Things could look very different if the Brexit goes through.

Its looking more obvious that leaving the EU

will have consequences

The current pension agreement in the UK is a “triple-lock” agreement where British pensioners in the EU have their pensions rise with annual rates of inflation. Experts are warning that this could all change if the UK leaves the European Union.

The UK will hold a vote on if they will leave the EU on the 23^rd of June and, should they leave, they will have to strike up new agreements with countries that house British retirees.

The policy that gives British pensioners an incremental increase is an EU-wide policy. The policy says that pensions increase by either wage or price inflation, whichever is higher, with a minimum increase of 2.5%.

If the UK fails to secure an agreement like this with other countries such as Spain, then British expats will find themselves in the same situation that is found in Canada, Australia, and New Zealand. In these countries the state pension is frozen and stays at the rate it was when they left.

As a result a Brit moving to  Spain or an EU country after the Brexit could find themselves up to £50,000 over 20 years according to calculations by AJ Bell. A 65 year-old retiring today would receive £155.65 per week, but 20 years without a rise on that could easily mount up.

AJ Bell warned that a Brexit would cast the aspirations of people wanting to retire in Europe, or already retired in Europe, into doubt. Some have faith that the government will be able to protect British expats if the Brexit goes ahead, but it should be noted that the UK has yet to set up a deal like this with a non-EU country since 1982, mostly because of how much it would cost.

While people who are not expats themselves may see this as one of the many EU-led costs to taxpayers, there is no doubt that anyone who will benefit from this agreement should chose to vote remain so that their pension is protected.

Ross Altmann, the Minster for Pensions, said that it was important to clarify this matter and make it a part of negotiating the UK’s exit if the votes go that way.

If the UK does vote to leave the EU there will still be a two year time period where EU treaties still apply, so there is likely going to be a lot of political back and forth in that time. Shailesh Vara, the Parliamentary under-secretary of State for Justice said that the Conservative Party don’t have any plans to change the current policy wherein British pensioners abroad have their pension payments frozen.

She added that a Brexit would leave a lot of pensioners who have worked hard to secure their future and enjoy their retirement in the dark. With the current rules the UK and Europe enjoy what is called the “triple lock” system that ensures their state pension is protected.

While the deadline for registering to vote by post has passed it is still possible for expats who have lived abroad for less than 15 years to register a proxy who can vote on their behalf at the upcoming referendum.