Multinational companies dominate early retirements in Spain

Multinational companies dominate early retirements in Spain

A recent Mercer study on separations in Spain corroborates that multinational companies take over the majority of processes. Specifically, 74% of separations are signed by this type of companies.

Early retirement is the most common measure to separate employees before the legal retirement age. 44% materialize them with collective layoffs32% with individual dismissals and 24% with voluntary agreements.

“They are agreements between the company and the worker with the objective of concluding the employment relationship prior to the planned retirement date in exchange for financial guarantees until the possible final date,” explains the consultant.

Industry is the sector that most applies severance programs with 19% of the total, closely followed by mass consumption, with 18%. Closely followed by companies in the financial, chemical and pharmaceutical sectors; with 8%, the technological ones.

To calculate the supplement, in 64% of cases of dismissal, whether individual or collective, the total salary is taken into account, and in 36% the fixed salary. Regarding voluntary agreements, in 67% of cases the total salary is taken as the basis, and in 33% the fixed salary.

What is the profile? Workers aged around 57 benefit from this option, while receiving an amount similar to their salary and contributing to Social Security. The average completion age is 64 years.

“Annuity plans have a double advantage, since they allow companies to better manage their human resources while offering older workers the possibility of retiring before the legal retirement age, maintaining a good part of their salary. and the contributions for your future retirement pension to Social Security,” says Rosa Farré, head of separations at Mercer Spain.

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