This notice sets out the main rules applicable, as of 1 January 2027, to the calculation of the regulatory base for contributory retirement pensions.
The amendment stems from the reform introduced by Royal Decree-Law 2/2023, of 16 March, which amended, among other provisions, Article 209 and the transitional regime of the General Social Security Act.
- Regulatory base in 2027
For pensions whose triggering event occurs between 1 January and 31 December 2027, the method introduced by the reform calculates the regulatory base as follows:
The sum of the 304 highest contribution bases within the 308 months immediately preceding the month prior to the triggering event, divided by 354.67.
Accordingly, the reference period is extended to 25 years and 8 months. Within this window, the 304 highest-value months are selected, meaning the four least favorable months are excluded from the calculation.
For these purposes, the computable bases are determined after applying the applicable rules on revaluation and integration of contribution gaps. Bases prior to the twenty-four months immediately preceding the month before the triggering event are updated in line with CPI trends; those relating to the last twenty-four months are included at their nominal value.
- Retention of the previous calculation method where more favorable
The new system does not automatically replace the previous calculation regime. For triggering events occurring between 1 January 2026 and 31 December 2040, the managing body must apply, ex officio, whichever method produces the more favorable regulatory base.
| Therefore, in 2027 the following two methods will be compared: |
| Applicable calculation | |
| Previous regime | Sum of the contribution bases for the 300 months immediately preceding the month prior to the triggering event, divided by 350. |
| Regime introduced by the reform for 2027 | Sum of the 304 highest bases within the 308 months immediately preceding, divided by 354.67. |
The comparison applies exclusively to the regulatory base. Once the more favorable base has been determined, the remaining applicable quantification rules will apply, including the percentage derived from the contribution record, any reducing coefficients or incentives for early or deferred retirement, the applicable ceilings and, where relevant, any applicable supplements.
- Practical scope of the amendment
The reform gradually introduces a wider observation period and allows the least favorable bases within that period to be excluded. Its effect will necessarily depend on everyone’s contribution history.
The method may be particularly relevant where there have been periods of reduced bases, gaps in contributions, reduced working hours, fluctuations in pay, or declining bases towards the end of one’s working life. However, it does not guarantee a higher pension amount, since the transitional regime preserves the previous calculation method whenever it proves more favorable.
The rules will reach their ordinary configuration from 2044 onward. From that point, the 324 highest bases within the 348 months preceding the month before the triggering event — a period of twenty-nine years — will be taken and divided by 378, excluding up to twenty-four of the lowest-value months.
- Related rules in force from 2027
The change to the calculation period should be distinguished from the rules on ordinary retirement age and the percentage applicable to the regulatory base:
- The ordinary retirement age will be 67, unless at least 38 years and 6 months of contributions are credited, in which case it will be 65.
- Access to 50% of the regulatory base with fifteen years of contributions is maintained, provided the applicable minimum contribution requirements are met.
- As of 2027, to complete the percentage applicable to the regulatory base, an additional 0.19% will be added for each additional month of contributions within the first 248 months, and 0.18% for each of the following 16 months. 100% is reached with 37 years of contributions.
- Conclusion
For a retirement triggered in 2027, the managing body must compare the traditional calculation based on the last twenty-five years with the new calculation based on the 304 best bases within the last 308 months, and apply whichever produces the more favorable regulatory base.
The specific determination of the pension requires reviewing the working-life report, the contribution bases credited, periods without contributions, and the type of retirement applied for.
Author:
Miriam Sitjar
Associate, Labor Department, addwill