Social Security

The pension amount is obtained by applying the percentage,  depending on the number of contribution years and the corresponding scale, to the regulating base.

Percentage / Reduction Coefficients

The percentage of the corresponding base pension, in accordance with the years of pension contributions, will be reduced by applying the following reduction coefficients:

• When a worker gets the pension after voluntarily giving up work, the amount of the pension will be reduced by 8% for each year or fraction of a year remaining at the time of the causal event before the worker reaches the age of 65, according to the following scale:

- At 60 years of age: 0,60.
- At 61 years of age: 0,68.
- At 62 years of age: 0,76.
- At 63 years of age: 0,84.
- At 64 years of age: 0,92.

• When workers have more than 30 complete years of contributions and are get the pension because they stop working for a reason that is beyond their control (involuntary termination), the pension will be reduced by the following percentages according to the complete years of contributions:
  
  - Between 30 and 34 years of proven contributions: 7,5 %. 
  - Between 35 and 37 proven years of contributions: 7,0 %.
  - Between 38 and 39 proven years of contributions: 6,5 %.
  - with 40 or more proven years of contributions: 6,0 %.
  
  A worker's free will is therefore understood to be an unequivocal demonstration of will by someone who decides to terminate the contract but who could continue the working relationship as there is no objective reason not to do so. In any case, it will be considered that the employment relationship was terminated involuntarily if its end was produced by any of the causes listed in art. 208.1.1 of the General Law on Social Security (LGSS).

  These percentages will also apply whenever the working relationship has ended for any reason other than those indicated above:

  • To unemployment benefit recipients, when the benefit ends due to the period for the benefit ending or because they become retirement pensioners, in accordance with letters a) and f), section 1, of Article 213 of the LGSS.

  • To unemployment subsidy beneficiaries, at welfare level, over 52 years of age.

  • To workers over 52 years of age who do not meet the requirements for the unemployment subsidy once the unemployment benefit period has ended and continue to be registered as applicants for employment at the public employment service offices.

  To calculate the 30 or more years of contributions that must be proven in the various cases mentioned above, the regulations for calculating the ordinary retirement pension amount will apply. 

Improving early retirement pensions from before 1 January 2002. Therefore, workers who, prior to 1 January 2002, had become entitled to an early retirement pension and were insured by a Mutual Society, whether they were in the General Scheme or the Special Schemes, and are of an age that would have been taken into account to apply the corresponding reduction coefficients of between 60 and 64, both inclusive, are entitled to an improvement in their pension, effective from 1 January 2007, if the documentation held by the Social Security Administration shows that they meet the following requirements:

• They have between 35 and 37 proven years of contributions.
• The termination of the employment contract through which they would get early retirement was produced by a cause that was not attributable to the free will of the worker and was included among the possibilities listed in article 208.1.1 of the LGSS.

The improvement to the pension consists of an increase in its total monthly amount, which varies according to the age of the worker, which is taken into account to determine the reduction coefficient of the percentage that is applicable to the pension's regulating base, according to the following scale:

• 60 years of age, €63 / month
• 61 years of age, €54 / month
• 62 years of age, €45 / month
• 63 years of age, €36 / month
• 64 years of age, €18 / month

This amount, which will be paid in fourteen payments, will be granted as a variation in the amount of the retirement pension and will be included in it for all purposes, including the application of the maximum limit and without prejudice, if appropriate, to the absorption of the minimum supplement that the worker has been receiving. When these are pensions granted under international regulations, to set the amount of the monthly increase the rules in those regulations will be applied to determine and calculate the amount of the pensions.

The managing body will automatically, or at the request of the parties, grant entitlement to the improvement within three months, counting from the publication of the Law of Social Security Measures, which was in the Official State Gazette of 6 December, in accordance with the information contained in the Social Security benefits data base and in the general affiliation file, which show, respectively, the number of years contributions have been made and the involuntary termination of the employment.

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