From August 2026, Spanish pensioners who take up flexible retirement and work 55–80% of a full schedule will receive a 25% pension supplement. The reform also opens the scheme to self-employed workers.
Spain will introduce a significant change to its pension system from 28 August 2026, allowing retirees who choose flexible retirement and work between 55% and 80% of a standard working week to receive a 25% supplement on their pension. The measure, approved by the Council of Ministers, is designed to encourage pensioners to re-enter the labour market and boost their income while maintaining partial retirement status.
The new regulation, as reported by Europa Press, brings several key updates. Pensioners who return to work part-time within the specified range will see their pension increased by a quarter for the duration of their employment. Those working between 33% and 55% of a full schedule will receive a 15% supplement. For example, a retiree with a €1,600 monthly pension who resumes work at 60% of a full schedule would receive 40% of their pension (€640), plus a 25% bonus (€160), totalling €800 per month during their employment. This additional payment ends once the retiree fully exits the workforce.
One of the most notable aspects of the reform is the inclusion of self-employed workers, who were previously excluded from flexible retirement. Under the new rules, self-employed pensioners can also receive up to 25% of their pension while working, provided they have not been registered as self-employed in the three years prior to retirement. This condition aims to prevent misuse of the flexible retirement option.
The reform also widens the permitted range for part-time work among employees, now set between 33% and 80% of a full schedule, compared to the previous 25% to 75%. The waiting period to apply for flexible retirement has been removed, allowing pensioners to opt in at any time after their pension is granted. Additionally, those who previously took involuntary early retirement will benefit from recalculated pensions when returning to full retirement, as contributions made during flexible retirement will be counted towards their final benefit.
These changes come as Spain faces ongoing demographic shifts, with the number of pensioners reaching 10,452,674 in January 2026, according to Social Security data. The average pension stands at €1,363, but many recipients still fall below the legal minimum. In such cases, the state provides a minimum supplement, though eligibility depends on income and is not automatic. Pensioners with annual additional income above €9,442 lose the right to this supplement.
Other mechanisms exist to boost pension income. According to Alfonso Muñoz Cuenca, a Social Security official, pensioners who have had children and whose pensions were granted after 2016 are entitled to a gender gap reduction supplement, even if their pension exceeds the maximum threshold. This measure is intended to address disparities and further support retirees.
Spain's flexible retirement reform reflects broader efforts to adapt the pension system to an ageing population and rising beneficiary numbers. By incentivising part-time work among retirees and extending benefits to the self-employed, the government aims to balance sustainability with improved financial security for pensioners. The changes are expected to impact both current and future retirees, offering new options for those seeking to combine work and pension income.
