Reform of active retirement, partial retirement, and the supplement for deferred retirement, starting April 2025

Specifically, the main new features of the legal text include changes to the regulation of active and partial retirement modalities, as well as a slight modification of the delayed retirement supplement. These three measures, the most prominent in the regulation, will come into force on 1 April 2025.

New regulatory framework for active retirement (as of 01/04/2025)

• The requirement to have a contribution that entitles to 100% of the pension to have access to active retirement is eliminated.
• The compatibility of active retirement with the incentives for delay is recognized.
• The percentage of pension compatibility with the maintenance of the activity will increase depending on the delay in accessing retirement:
  • 1 year of delay: 45% of pension
  • 2 years: 55%
  • 3 years: 65%
  • 4 years: 80%
  • 5 years: 100%
• The initial percentage of pension compatibility will be 75% if the activity is carried out on one’s own account and it is proven that at least one employee has been hired on an indefinite basis with a minimum seniority 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 two years prior to the start of active retirement.
• These percentages will increase by 5 percentage points for each 12 months of uninterrupted professional activity in a situation of active retirement, with a maximum limit of 100%.

New regulatory framework for partial retirement (as of 01/04/2025)

All the parameters, conditions and requirements currently in force for partial retirement are maintained except for the following:

• Access to partial retirement, with the corresponding relief contract, may occur up to three years before the ordinary retirement age that corresponds depending on the contribution career (in the regulation in force until now, access was 2 years before).
• The reduction in the working hours of the partial retiree during the first year will be at least 20% with a maximum of 33%, for those who anticipate access to retirement by more than two years.
• The recruitment of the relief worker will be indefinite and full-time, and must be maintained for at least two years after the termination of the partial retirement.
• Permanent workers who are not on a permanent basis may be part of the relief process.
• Effective compatibility between work and pension will allow the accumulation of working time in periods of days per week, weeks per month, months per year and periods of time during the validity of the relief contract, in accordance with the provisions of the individual agreement or collective bargaining.

Partial retirement: Extension of the regulation applicable to the manufacturing industry

The regulation applicable to the manufacturing industry is extended to pensions caused before January 1, 2030 with the following adjustments:

• The company’s contribution for the partial retiree will increase progressively: 40% in 2025; 50% in 2026; 60% in 2027; 70% in 2028 and 80% in 2029.
• The percentage of workers with permanent contracts in the workforce must reach at least 75%.
• The same accumulation regime of working hours will apply.
• Permanent workers who are not on permanent contracts may be part of the relief process.

This measure will take effect the day after its publication in the BOE, as it is an extension of a regime currently in force.

Improvement of the supplement in delayed retirement (from 01/04/2025)

From the second year of delay in the retirement pension, the incentive regulated in article 210 LGSS can be recognized at 2% per month for each additional 6 months of delay (or its equivalent in the case of lump sum or mixed payment). With the current regulation, in force until 31/03/2025, you can only opt for the additional 4% for each full year of delay.

Fixed-discontinuous (from 01/04/2025)

The multiplier coefficient of 1.5 is recovered for the purposes of proving the contribution periods necessary to cause the right to retirement, permanent disability and death and survival benefits in the case of fixed-discontinuous workers.