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Spain's New Active Retirement Law: Work and Collect Your Pension from April 2025

Madrid, Spain – A new 'active retirement' law, set to take effect on April 1, 2025, will allow Spanish pensioners to combine work with their retirement benefits. Alfonso Muñoz, an official from the National Social Security Institute (INSS), explained the key changes in a recent statement. Under the new regulations, individuals will be able to work, either as self-employed or employed by others, while receiving a portion of their pension. This marks a significant shift from previous rules that often required a full cessation of work to receive a full pension. Muñoz highlighted that the new law removes the requirement for extensive contribution years to access 100% of the pension. Instead, a progressive system will be implemented. Pensioners who continue working will initially receive 45% of their pension, with this percentage increasing annually until it reaches 100% after five or more years of continued activity. Furthermore, the new contributions made by working pensioners will cover temporary incapacity and professional contingencies. However, these new contributions will not enhance the pension amount already recognized. This reform aims to provide greater flexibility for retirees and encourage continued economic activity.