THE Treasury cuts extra pay by up to €400 for around 75,000 pensioners in Spain due to a change in criteria by the Ministry of Finance.
The announcement, made on Wednesday, November 25, that the extra pay has been cut will come as a surprise to the pensioners since they had not been warned by either the Social Security or the Treasury.
The ministry in charge of managing pensions has explained that the new policy related to benefits is subject to the tax rules set by the Treasury and that the cut is applied only to the extra pay, so it will not be applied to the January pay.
The Minister of Social Security, José Luis Escrivá, said: “In the extra pay months, I was deducting less than the tax authorities now say should be deducted. So those who have part of their pension garnished this month, some of them, will get less.”
José Luis Escrivá continued by stating that the cut will not be applied on pensions below the Minimum Interprofessional Salary (MIS): “With the change of criteria, with the extra payment it is done and next month it will not be done. We apply the tax rules.”
Thank you for taking the time to read this news article “Treasury cuts extra pay by up to €400 for 75,000 pensioners in Spain”. For more UK daily news, Spanish daily news and Global news stories, visit the Euro Weekly News home page.