With the approval of Royal Decree-Law 11/2024, Spain has introduced significant changes to its retirement system. These reforms, set to take effect on April 1, 2025, aim to provide greater flexibility in retirement options and encourage workers to stay in the labor market longer.
Partial retirement: more accessible, but with some restrictions
The new law allows employees to retire partially up to three years before the official retirement age, if they reduce their working hours by 20% to 33% in the first year. Over time, they can gradually reduce their workload to 75%. While this makes early retirement more feasible, it also comes with stricter initial conditions compared to previous rules. Additionally, the requirement to hire a replacement worker has been removed, except in specific cases.
To qualify for partial retirement, employees must meet the following conditions:
- At least 33 years of contributions (or 25 if they have a disability over 33%).
- A full-time permanent contract.
- At least six years of continuous service with their current employer.
Employers, on the other hand, must keep replacement contracts in place for at least two years after an employee takes partial retirement.
Active retirement: work while receiving a pension
One of the biggest changes is the removal of the requirement for a full contribution career. Now, if you have at least 15 years of contributions—the minimum needed for a contributory pension—you can apply for active retirement. This change particularly benefits workers who have gaps in their contribution history.
However, the percentage of your pension you can receive depends on how long you continue working after reaching retirement age:
- 1 year: 45%
- 2 years: 55%
- 3 years: 65%
- 4 years: 80%
- 5 years or more: 100%
For self-employed workers, the percentage is 100% if they have employees and 75% if they work alone. This new flexibility allows people to continue working while drawing up part of their pension.
Delayed retirement: incentives to keep working longer
The reform also strengthens incentives for employees who choose to work beyond the standard retirement age. Workers who delay their retirement can receive a higher pension, a one-time bonus, or a combination of both. These benefits can also be combined with active retirement, making it an attractive option for those who want to keep working while maximizing their pension benefits.
These changes aim to strike a balance between ensuring the financial sustainability of the pension system and giving workers more flexibility in how and when they retire.
If you have any questions, feel free to contact our addwill labor department at laboral@addwill.eu, by phone at +34 934 875 200, or by clicking here. We will be happy to assist you.