🇪🇸 Pension & Retirement in Spain

Henning Wandsleb
Henning Wandsleb
  • Updated

Oyster policy is denoted in purple.

Statutory

Spanish law doesn’t impose an obligation on employers to provide pensions beyond what is granted by Social Security. Employees and self-employed individuals who are covered by the national Social Security scheme receive various retirement benefits after attaining pension age and contribution requirements.
Employees covered by the national Social Security scheme receive various retirement benefits after meeting certain pension requirements. Pension benefits and requirements vary by employee, as outlined below.

Ordinary retirement

Ordinary retirement pensions are paid to those employees who meet age and contribution requirements. These age and contribution requirements increase gradually until 2027, to a maximum of 67 years old. For example, an employee retiring in 2024 must:

  • be at least 65 years old and have contributed to Social Security for at least 38 years;
  • be at least 66 years and 6 months if the employee has not contributed to Social Security for 38 years.

In addition to the age and contribution requirements, employees must have contributed to Social Security for a period of at least 15 years (5,475 days). At least two years of their contributions must have been within the 15-year period immediately prior to the start of retirement eligibility.

Early retirement

Employees may benefit from early retirement based on:

  • their group or professional activity (e.g., employees working in hazardous conditions, or professional groups with higher rates of morbidity);
  • disability;
  • contributions to Employment Mutuals;
  • non-voluntary termination of employment; and
  • voluntary early retirement.

Employees must meet the necessary requirements to exercise their rights to early retirement, which vary based on individual situations.

Flexible retirement

When an employee is qualified to receive pension, they can combine their retirement pension with a part-time employment contract. The amount of the retirement pension is reduced accordingly.

Partial retirement

Employees can begin partial retirement at the age of 60 and reduce their working day by 25% to 50%, without the need for entering into a relief contract. Employees who haven’t met the legal retirement requirements may also opt for partial retirement when they meet certain contributions, tenure and work reduction requirements.

The earnings base for the final pension calculation is the average of the employee contribution base of the last 25 years. The minimum contribution period is 15 years, of which at least two must be concluded during the 15 years immediately prior to the causal event.

Customary

N/A

Best in Class

N/A