Who Can Take Partial Retirement at 62: An Overview of Conditions and Pitfalls. In Spain, some employees can reduce their working hours and receive part of their pension starting at age 62. However, eligibility for this scheme depends on work history, contract type, and employer approval. We break down the key conditions and nuances.
The option to retire partially at 62 is a real possibility for those who have accumulated enough years of employment and are ready to switch to reduced working hours. As labor lawyer Ignacio Solsona notes, the decisive factor is the number of years worked with official contributions: if the length of service exceeds 38.5 years, an employee can apply for a partial pension as early as 62. Those with less experience will have to wait until 64.
A partial pension is not just a reduction in hours. The scheme implies that the employee switches to part-time work, and the missing portion of income is compensated by a pension. However, several conditions must be met to arrange such a transition. The minimum service period is 33 years, and for people with a disability of at least 33%, it is 25 years. In addition, at least six years at the same company and a full-time employment contract are required. If the employee already had a part-time contract, they cannot use this scheme.
An important point is the so-called 'shadow contributions.' This mechanism formally allows you to add up to three years of service to reach the required threshold. For example, if a person is 62 with 35.5 years of experience, the system will add another three years so that they reach the necessary 38.5 years. But it's important to understand: these 'virtual' years do not increase the pension amount or reduce possible penalties for early retirement.
Partial retirement can only be arranged by agreement with the employer. The company is not obligated to comply unless this is specified in the collective agreement. If both parties agree, a substitution (relevo) contract is signed, and the employer must keep the new employee on a full-time basis for at least two years after the retiree's final departure. Throughout the entire period, both the worker and the company continue to pay full contributions. Special rules apply in the industrial sector: here, partial retirement is available from the age of 61, and the working day can be reduced to 20% of the original, but in this case, contributions are reduced to 50%.
In recent years, legal changes have made partial retirement less attractive for businesses. However, recent government initiatives may open up this path for hundreds of thousands of public sector employees. As Solsona notes, the new royal decree could unlock the procedure for more than 700,000 public administration workers.
In practice, issues of early retirement and part-time employment are becoming increasingly relevant for older Spaniards. For example, a court in the Basque Country recently recognized the right to a disability pension for a 63-year-old cleaner with chronic illnesses — more details on this case are available at this link.
Overall, a partial pension is a complex instrument that requires precise calculation and the agreement of all parties. Before making a decision, it is important to carefully review the terms to avoid unpleasant surprises and prevent any loss of income.
