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Retirement and Work: What The Law Says


retirement and work

Because of the current pension system, many retirees are looking for a source of income that will allow them to make ends meet more comfortably. Is it possible to work while retired? 

In today’s article, we explain what cases exist, their requirements and consequences.

As a general rule, it is forbidden to work and enjoy a pension. It doesn’t matter if you work as an employee or self-employed person, carrying out activities for the public authorities. However, there are exceptions…


Exceptions for working and be receiving a pension

1. Partial Retirement

It allows the employee to be both retired and working. Their working hours are reduced by 25% to 50%, and their salary is reduced proportionally. 

They can thus receive part of their salary and have access to retirement. If the worker is not of legal retirement age, the company must conclude a replacement contract with another worker


2. Flexible Retirement

It gives the possibility of making the retirement pension compatible with a part-time contract, within the limits of the working day. Working days of less than 50% or more than 75% will result in the suspension of the pension. 

When you stop working, 100% of your pension will be re-collected, and you will have to notify Social Security to recalculate the resulting pension. That does not apply to civil servants, the judiciary and the armed forces.


3. Employed or Self-Employed workers

They can continue working full-time or part-time, receiving 50% of the pension, in addition to the remuneration paid from their activity. 

The contribution base for Social Security will be 8% in these cases. For employees: the company will pay 6% and the worker 2%, and for self-employed workers: 8%, which will correspond to the self-employed modality. At the end of their activity, they will receive the full pension. 

To be able to access this type of retirement, the worker will have had to reach the legal retirement age, corresponding to 100% of the regulatory base.



As for the sanctions that would fall on the retiree if he does not comply with the requirements of the cases described above, the Labour Inspectorate sends the infraction report as a proposal for a sanction to the INSS. 

The latter in turn opens the sanctioning file, which usually includes a sanction of between three and six months of benefits and also the reimbursement of the wages unduly received by the worker during the period of registration that the Inspection has sent to the General Treasury of Social Security.


Related articles:

Is a pension plan recommended in Spain?

Most Common Spanish Tax Penalties (Part 1)

Most Common Spanish Tax Penalties (Part 2)


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