Incompatibilities / Termination

Incompatibilities:

Collecting the  retirement pension is incompatible with:

• The pensioner's work with the exceptions and under the terms determined by law or regulations.
• Working in a public sector job stipulated in art. 1, section 1, paragraph 2 of Law 53/1984, of 26 September, on incompatibility for employees of the public administration service (exceptions: emeriti university professors and  qualified health professionals).
• The performance of senior positions in the General State Administration and state public sector entities. 

Working in  roles that are incompatible with the right to claim the pension, shall result in the following:

• The retirement pension will be suspended, as will the medical assistance to which pensioners are entitled.
• Employers are required to register the worker as a contributor and to make the corresponding contributions.
• New contributions are used to:
  • Increase, where applicable, the standard pension percentage.
  • Accrue the corresponding additional percentage for working past the standard retirement age, as set out in art. 210 of the  General Law on Social Security.
  • Decrease the applicable reduction coefficient, in the event of early retirement.
  • Under no circumstances will new contributions modify the base rate.

Compatibilities:

Notwithstanding the previous paragraph, it shall be possible to combine receiving a retirement pension and working in the following cases:

• People receiving the pension may supplement their pension with a part-time job under the established terms. During this situation, known as partial retirement, the pension will be reduced inversely proportional to the reduction of the pensioner's working hours compared to those of a comparable full-time worker.
• Retired pensioners may collect their "corresponding pension" and at the same time hold a part-time job as established by law. During this situation, known as flexible retirement, the pension will be reduced inversely proportional to the reduction of the pensioner's working hours compared to those of a comparable full-time worker.
• Receipt of a retirement pension is compatible with self-employment, when total annual income does not exceed the MPW, calculated on an annual basis. Those performing such economic activities are not obliged to pay Social Security contributions and will not generate rights to receive Social Security benefits.
• Activities performed on a self-employed basis by professionals affiliated under an alternative mutual society or exempt from being affiliated to the RETA.
• Retaining ownership of a business  and carrying out the activities inherent to said ownership.
• Active Retirement Pension, Article 214 of the LGSS:
  Receipt of a contributory retirement pension will be compatible with the pensioner carrying out work on behalf of another employer or on a self-employed basis, under the following terms:

Regulations in force until 31/03/2025

• The right to receive the pension must have been obtained at least one year after the pensioner reached the applicable retirement age, with instances in which the interested party retires retirement under the benefit of bonuses or takes early retirement not being applicable to this end.
• The percentage applicable to the corresponding pension base in order to establish the pension amount must be 100%.
• Compatible work may be full-time or part-time on behalf of a third party or self-employed.
• The retirement pension amount that is compatible with work carried out will be equal to 50% of the resulting amount during the initial recognition, once, where applicable, the maximum limit of the public pension, or the pension being paid, is applied at the time when compatibility with work starts. In all instances, minimum supplements, regardless of whether the working day or the activity performed by the pensioner, will be excluded.
  However, if the activity is carried out on a self-employed basis and proof is provided that at least one worker employed by another person has been hired, the amount of the pension compatible with work will reach 100 %. The sixth final provision of the General Law on Social Security also provides for the possibility of extending this 100% compatibility to employees and other self-employed workers in the future.

• The pension will be revalued in full under the terms established for Social Security system pensions. However, as long as the compatible job is maintained, the amount of the pension plus the accumulated revaluations will be reduced by 50%, except in the case of self-employment at under the terms indicated in the previous paragraph.

• The pensioner will retain no right to supplements for pensions beneath the minimum amount during the period in which the pension is supplemented with work.

• The beneficiary will be considered a pensioner for all purposes.

• Once the employment relationship has ended, full payment of the retirement pension will be restored. The same shall apply in the case of cessation of self-employment if the circumstances are not such that 100% of the retirement pension can be combined with work.

• This compatibility scheme is not applicable in the event of holding a job or senior position in the public sector, which shall be incompatible with the receipt of a retirement pension.

• This scheme is incompatible with the receipt of the corresponding additional percentage for working past the standard retirement age, as set out in art. 210 of the General Law on Social Security.

Regulations in force since 01/04/2025

• The minimum contribution period to be entitled to a retirement pension must be reached on the date on which the legal retirement age is reached.

• Access to the pension must take place at least one year after reaching the legal retirement age applicable in each case (or one year after the date on which the minimum contribution period required for access to the retirement pension is reached, whichever is the later), without, for these purposes, retirement on the basis of bonuses or anticipation of the retirement age that may be applicable to the interested party being admissible.
• Compatible work may be full-time or part-time on behalf of a third party or self-employed.
• The amount of the retirement pension compatible with work shall be the result of applying a percentage to the amount derived from the initial recognition of the pension, or to the amount being received, including the maternity or gender gap supplement and excluding the minimum supplement, regardless of the working day or the activity carried out by the pensioner.

This percentage varies according to the number of years by which access to retirement has been delayed, in accordance with the following scale:

• 1 year delay: 45%
• 2 year delay: 55%
• 3 year delay: 65%
• 4 year delay: 80%
• 5 year delay: 100%

For these purposes, full years shall be taken, without any fraction thereof.

The percentage resulting from the above scale shall be increased by 5% for each 12 months of uninterrupted active retirement, up to a maximum of 100% of the pension. This increase shall take effect from the first day of the month following the month in which the 12-month period is completed.

• If the activity is carried out on a self-employed basis and at least one employee has been employed to carry it out, with a minimum length of service of 18 months, or if a new employee is hired on an indefinite basis who has not had an employment relationship with the self-employed worker in the 2 years prior to the start of active retirement, the percentage of the pension compatible with work – depending on the number of years by which access to retirement has been delayed – will be:

• 1 to 3 year delay: 75%
• 4 year delay: 80%
• 5 year delay: 100%

In these cases, the 5% increase will also be applied for every 12 months of active retirement under the terms indicated in the previous point.

If the circumstances set out in the first paragraph of this point are not met, the scale set out in the previous point shall apply.

• The pension will be revalued in full in accordance with the terms established for pensions in the Social Security system, although, as long as the compatible work is maintained, the amount of the pension plus the accumulated revaluations will be subject to the percentage that corresponds in accordance with the above.
• The pensioner shall not be entitled to the minimum allowance during the period of active retirement.
• The beneficiary will be considered a pensioner for all purposes.
• On termination of employment or self-employment, the pension shall be reinstated in full.
• This system of compatibility shall not apply in the event of holding a post or senior position in the public sector.
• Contributions made during active retirement shall not give rise to any increase in the percentage applicable to the base rate of the pension that has been recognised, nor shall it increase the financial supplement for late payment that would have corresponded.
• Active retirement is compatible with receipt of the late payment supplement under Article 210 of the LGS, in all its forms.

Contribution:

When working for an employer or on a self-employed basis, and said work is compatible with the retirement pension, employers and workers will only make Social Security contributions in the event of temporary disability or occupational contingencies, according to the corresponding Social Security system scheme regulations; however, they will be required to make special solidarity contributions of 9%, which are not taken into account when calculating benefits; for employed workers, this obligation will be divided between the employer and the worker, with the former responsible for 7% and the latter responsible for 2%.

•  Compatibility of a retirement pension with artistic activity. (entry into force on 1 April 2023).

Royal Decree-Law 1/2023 of 10 January introduces Article 249 quater into the revised text of the General Law on Social Security, which extends the system of compatibility of retirement pensions with artistic activity that was previously provided for in Royal Decree-Law 302/2019 of 28 April.

Thus, it is determined that the receipt of 100% of the amount of the contributory retirement pension will be compatible with:

1. 1. With the employment and self-employment of persons pursuing an artistic activity.

      For these purposes, artistic activity is understood to be that carried out by persons who carry out artistic activities, be they dramatic, dubbing, choreographic, variety, musical, singing, dancing, acting, specialists, artistic direction, cinema, orchestra, musical adaptation, stage, production, choreography, audiovisual work, circus artist, puppet artist, magic, scriptwriters, and, in all cases, that carried out by any person whose activity is recognised as a performer in Title I of Book Two of the revised text of the Law on Intellectual Property, approved by Royal Legislative Decree 1/1996, of 12 April, or as an artist, player or performer by the collective agreements applicable to the performing arts, audiovisual and musical activity, in accordance with Article 1. 2, paragraph 2 of RD 1435/1985 of 1 August.

   2. With work for hire or reward and self-employed activity carried out by authors of literary, artistic or scientific works, as defined in Chapter I of Title II of Book One of the Law on Intellectual Property, whether or not they receive intellectual property rights for such activity, including those generated by their transmission to third parties and regardless of whether they receive other related remuneration for the same activity.
      

• The amount of the contributory retirement pension compatible with artistic activity includes the supplement for pensions below the minimum pension and the maternity or gender gap reduction supplement, as appropriate.

• The beneficiary in a situation of compatibility will be considered a pensioner for all purposes.

• Beneficiaries of a contributory social security retirement pension who, in addition to their artistic activity, carry out any other work as an employee or self-employed person other than the aforementioned activity which would result in their inclusion in the field of application of the General Scheme or of any of the special social security schemes may not benefit from this type of compatibility.

• Similarly, any form of early retirement or partial retirement is excluded from the scope of this article.

• While working as an employee, employers are obliged to apply for registration and pay contributions to the General Social Security Scheme only for occupational contingencies, although they will be subject to a special solidarity contribution of 9% of the contribution basis for common contingencies, not computable for the purposes of benefits, which will be shared between the employer and employee, with the employer paying 7% and the worker 2%.

• During self-employment compatible with a retirement pension, the persons are obliged to apply for registration and pay contributions under this special scheme only for occupational contingencies and are subject to a special solidarity contribution of 9% of their contribution basis for common contingencies, which does not count for benefit purposes.

However, as an alternative to this system of compatibility, the beneficiary of a contributory Social Security retirement pension in which the above circumstances are met may opt for the application of the legal scheme laid down for any other forms of compatibility between pension and work, established by law or regulation, when he/she meets the requirements for this.

Pensioners may also opt to suspend their pension, in which case registration and the payment of social security contributions will be in accordance with the rules governing the social security scheme that corresponds to their activity.

• Compatibility of the retirement pension with the work of primary care practitioners, family doctors and paediatricians assigned to the national health system with statutory or civil servant appointment
  • Until 28 December 2025, primary care practitioners, family doctors and paediatricians assigned to the National Health System with statutory or civil servant appointment may continue to perform their duties during the extension of their active service and, at the same time, access retirement by receiving 75% of the amount resulting from the initial recognition of the pension, once the maximum public pension limit has been applied, if applicable.

Also eligible for this compatibility are primary care practitioners assigned to the national health system with statutory or civil servant appointments who have received a contributory retirement pension and return to active service, provided that the causal event giving rise to this pension occurred on or after 1 January 2022 or that they had availed themselves at the time of the compatibility of the retirement pension with the appointment as statutory or civil servant staff of health professionals, made under Royal Decree-Law 8/2021, of 4 May.

• This compatibility shall require compliance with the following requirements:
  • a) The right to receive the pension must have been obtained after the pensioner reached the applicable retirement age, with instances in which the interested party retires as a result of age reductions or takes early retirement being inapplicable to this end.
    

The provisions of the preceding paragraph shall not apply to medical practitioners who have availed themselves of the compatibility of their retirement pension with their appointment as statutory personnel or civil servants of health professionals under Royal Decree-Law 8/2021 of 4 May.

• b) Compatibility shall apply in the case of full-time work as well as in the case of part-time work, provided that the reduction in working hours is in all cases 50% of the working hours of a comparable full-time worker.
• c) Allowances for pensions below the minimum pension for as long as he/she combines the pension with the activity of artistic creation, provided that he/she fulfils the conditions laid down for this purpose.
• d) Receipt of the supplement for late payment of the retirement pension is compatible with access to this form of compatibility between work and pension, without the amount being reduced.
• e) Beneficiaries of a contributory social security retirement pension who, in addition to carrying out their duties as primary care medical practitioners, are engaged in any other employed or self-employed work which would bring them within the field of application of the General Scheme or any of the special social security schemes, are not eligible for this type of compatibility.

• The beneficiary will be considered a pensioner for all purposes.

• During the period of work compatible with the retirement pension, the obligations of affiliation, registration, de registration and variation of data provided for in Article 16 of the TRLGSS and the obligation to pay contributions under the terms of Articles 18 and 19 of the same legal text shall apply, and the provisions of Article 153 of the TRLGSS shall not be applicable.
• Without prejudice to the provisions of the following point, during their compatible work they shall be protected against all common and occupational contingencies, provided that they meet the necessary requirements to cause them, and the system for limiting pensions, incompatibilities and the exercise of the right of option, provided for in the revised text of the General Law on Social Security, shall be applicable.

No minimum contribution period is required for entitlement to benefit for temporary disability due to a common disease.

• If, during the period of compatibility, temporary disability occurs, payment of the retirement pension shall in any case be suspended on the first day of the month following the month of sick leave and shall resume on the first day of the month following the month of discharge. This shall also apply in cases of relapse.

In any case, entitlement to temporary disability benefit shall be extinguished by the termination of the compatible work, in addition to the general causes provided for in the regulations in force.

• Once the compatible work has ended, the contributions made during this situation may give rise to a change in the percentage applicable to the base rate of the retirement pension, which shall remain unchanged.

Likewise, these contributions shall have the effect of reducing or, where applicable, eliminating the reduction coefficient applied, at the time of entitlement to the pension, to those medical practitioners who had availed themselves of the compatibility of the retirement pension with the appointment as statutory personnel or civil servants of health professionals, made under Royal Decree-Law 8/2021, of 4 May, and who have taken early retirement.

They shall also have no effect in relation to the late payment supplement provided for in Article 210.2 of the LGSS and in the 17th additional provision of the consolidated text of the State Pensionable Classes Act.

On the pensioner's death.