Staff aged over 53 can stay home on 68% salary, says Telefónica

Spanish telecoms group aims to cut debt by asking employees with 15 years' service not to come to work, with chance to return

The Spanish telecoms group Telefonica has come up with a novel way of reducing its wage bill by offering employees aged over 53 the chance to stay at home on 68% of their salary.

Under a new deal negotiated with trade unions, any employee over 53 with 15 years of service will continue to receive slightly more than two thirds of their salary if they do not come in to work. They will remain under contract and the company will continue to pay their social security and private health contributions until they reach 65, thus saving the state the burden of further unemployment benefits.