Spanish Savings Banks Take Action On Early Retirement
April 22nd, 2011
Spanish savings banks or “Cajas” plan to take action before the government hardens legislation in relation to early retirement. In excess of 11,500 Cajas employees could benefit from this change in employment legislation, which is estimated will cost the industry about €3,700 million.
Each Cajas employee who chooses to take early retirement will cost the industry an average of between €300,000 and €350,000, but there will also be a cost to the State. Employees who opt to take advantage of this measure, which they can do after 55 years of age, will receive Government unemployment benefits during the first two years of their retirement. Thereafter, until the age of 64, they will receive between 90% and 95% of their net salary.
The cost to the sector will be about €3,700 million, or 36% of the €10.342 million (FROB) State Aid received. The Cajas and Unions claim this State Aid was authorised to help administer these work sector adjustments.
