Incompatibilities

A) Retirement pensions (voluntary, statutory, or due to permanent disability or unfitness for service)
With the entry into force of Royal Decree-Law 11/2024 of 23 December, significant improvements have been made to the compatibility between the retirement pension under the Civil Service Pension Scheme and the pursuit of gainful employment. These changes represent a relaxation of the limits and requirements, enabling pensioners to receive their pension whilst working, thereby encouraging them to remain in work for longer without losing their acquired financial entitlements.

Among the main amendments, the reform of Article 33 of the consolidated text of the State Civil Service Pensions Act stands out, which governs the incompatibility between receiving a pension and carrying out work, in both the public and private sectors.

1. Incompatibility with employment in the Public Sector.

Retirement pensions shall be incompatible with those holding a post or senior position in the public sector, such office being understood in accordance with the provisions of paragraph 2 of section 1 of Article 1 of Law 53/1984 of 26 December on Incompatibilities of Staff in the Service of Public Administrations, and, for this purpose, the exceptions set out in Article 19 and in the ninth additional provision of that Act; and, in the event that no regular remuneration is received for holding elected office as members of the Legislative Assemblies of the Autonomous Communities or of local authorities, those provided for in Article 5 of the same Act.

2. General incompatibility with employment in the Private Sector.

As a general rule, the receipt of retirement or old-age pensions is incompatible with carrying out any work, whether self-employed or in employment, which results in the pensioner being covered by any public social security scheme.

3. Eligibility is restricted to those receiving a retirement pension or who have been compulsorily retired whilst working in the Private Sector. Active retirement.

Without prejudice to the provisions of the preceding paragraph, receiving statutory retirement pensions shall be compatible with the pursuit of any activity, whether self-employed or in employment, which results in the recipient being covered by any public social security scheme, as well as with the receipt of unemployment benefit or allowance arising from such activity, provided that entitlement to the pension arose at least one year after reaching the age of statutory retirement.

The compatible pension amount is calculated by applying a percentage to the initial pension – excluding the minimum guaranteed supplements – based on the number of years’ delay in claiming the pension (ranging from 45% for a one-year delay to 100% for a five-year delay).

The percentage of the pension payable at the start of active retirement will increase by 5 percentage points for every 12 uninterrupted months spent in active retirement, up to a maximum of 100 per cent of the pension.

4. Compatibility between the retirement pension and artistic activity.

The term ‘artistic activity’ refers to work carried out by individuals engaged in artistic pursuits, whether in drama, dubbing, choreography, variety shows, musicals, singing, dancing, extras work, stunt work, artistic direction, film, orchestral work, musical adaptation, stage work, production, choreography, audiovisual works, circus performers, puppeteers, magicians, scriptwriters, and, in any event, that carried out by any person whose activity is recognised as that of a performing artist in Title I of Book Two of the Consolidated Text of the Intellectual Property Act, approved by Royal Legislative Decree 1/1996 of 12 April, which regularises, clarifies and harmonises the legal provisions in force on the matter, or as an artist, performer or executive artist under the collective agreements applicable to the performing arts, the audiovisual sector and the music industry, in accordance with Article 1. 2, paragraph 2, of Royal Decree 1435/1985 of 1 August, which regulates the special employment relationship of artists working in the performing arts, audiovisual arts and music, as well as of those carrying out technical or auxiliary activities necessary for the performance of such work.

Similarly, the scope of compatibility includes employment and self-employment carried out by authors of literary, artistic or scientific works, as defined in the consolidated text of the Intellectual Property Act, regardless of whether intellectual property rights are received for such activity, including those arising from the transfer of such rights to third parties, and irrespective of whether they receive other related remuneration for the same activity. The amount of the retirement pension or compulsory retirement pension shall be fully compatible with this activity, whether as an employee or self-employed. In the case of voluntary retirement pensions, beneficiaries will be eligible for this option from the moment they reach the statutory retirement age.

The amount of the contributory retirement pension compatible with artistic activity includes the supplement for pensions below the minimum level, the maternity supplement or the supplement to reduce the gender pay gap, and the financial supplement referred to in the seventeenth additional provision, in any of its forms.

Recipients of statutory retirement benefits who carry out an artistic activity shall register for social security and make contributions in accordance with the provisions of Articles 153 ter and 310 bis of the consolidated text of the General Social Security Act.

The beneficiary will be considered a pensioner for all purposes.

A recipient of a retirement pension who, in addition to carrying out an artistic activity, performs any other form of employment – whether as an employee or self-employed – that results in their inclusion within the scope of the General Scheme or any of the special Social Security schemes, shall not be eligible for this provision.

5. Incompatibility regarding permanent disability pensions.

In the case of retirement pensions or pensions for permanent disability for service or unfitness for duty, where the person concerned is not incapacitated for any profession or trade, the receipt of the pension may be combined with the pursuit of such an activity, provided that it is different from the one previously carried out in the service of the State and that no reciprocal calculation of contributions has been applied. In this case, and for as long as this situation persists, the amount of the pension awarded shall be reduced to 75% of the applicable amount, if more than 20 years of effective service to the State are proven; or to 55%, if the person concerned has completed fewer than 20 years of service at the time of their retirement.

6. Suspension during incompatibilities.
   The payment of pensions affected by the incompatibilities set out above shall be suspended for full months, from the first day of the month following the start of the activity giving rise to the incompatibility until the last day of the month in which it ends, without this affecting any increases to which such pensions are entitled; if the incompatible activity commences on the first day of a month, the suspension of payment shall take effect from the first day of the month in which the incompatible activity is carried out.

B) Widow’s pensions
The widow’s pension is compatible with receiving income from employment, whether as self-employed or an employee.

C) Orphan’s pensions

As a general rule, the orphan’s pension ceases upon reaching the age of 21. However, the pension is payable for life if the orphan was unable to carry out any work prior to the death of the deceased or before reaching the age of 21.

An orphan may be entitled to the pension until they reach the age of 25, provided that their earnings from employment in the private sector do not exceed the minimum professional wage. If you are currently in full-time education, you will be able to continue receiving your orphan’s pension until the first day of the month following the start of the next academic year. To this end, it is necessary to make an explicit request for a deferral of pension payments.

In any event, the orphan’s pension is incompatible with employment in the public sector.

Civil Service orphan’s pensions, granted to orphans over the age of 21 who are not disabled, under the general Civil Service legislation in force on 31 December 1984 and the special legislation arising from the Civil War, are hereby declared incompatible with the receipt of income or benefits in lieu of wages, such income or benefits being understood to include unemployment benefit and the unemployment allowance.

Simultaneous receipt is incompatible:

1. More than three ordinary pensions from the Civil Service Pension Scheme – retirement, widow’s, orphan’s or parental pensions – payable to different individuals.

2. Two or more ordinary civil service pensions payable to the person concerned or to their dependants by the same person.

3. Extraordinary civil service pensions, together with the ordinary pensions which their beneficiaries may claim on the basis of the same qualifying events.

4. Special pensions for acts of terrorism which, on the basis of the same events, regardless of their terrorist motivation, might be payable under the State Civil Service Pension Scheme. Furthermore, they are also incompatible with any other benefits of an exceptional nature which, for the same reason, may be granted under any basic public social protection scheme.

5. Where a person has accrued or may accrue pension entitlements under more than one public social security scheme, if, in order to prove that the minimum contribution period required to qualify has been met, or to determine the applicable percentage for calculating the amount of the pension, or both, contributions from another scheme, or, where applicable, from the Civil Service Pension Scheme, have been taken into account for any of the pensions as prior service under Law 70/1978 of 26 December.

Where a person is entitled to receive more than one civil service pension which are incompatible with one another, they may exercise the right to choose the pension they consider most appropriate.