Spain’s Supreme Court Bans Reduction of Child Pension Bonus for Working Retirees. Spain’s Supreme Court has ordered Social Security to calculate the child-related pension bonus based on the full pension amount, even if the retiree continues to work. This ruling changes the rules for thousands of Spaniards who combine retirement with employment.
The Supreme Court of Spain has resolved the dispute between pensioners and Social Security: now the child supplement must be calculated on the full pension amount, not just half, if a person continues to work and receives the so-called 'active pension.' This decision is especially important for autónomos—self-employed individuals—who are most likely to combine a pension with professional activity.
Previously, Social Security applied a special procedure to such pensioners: if a person continued working, they received only 50% of their pension, and the gender supplement—a child benefit introduced to compensate for career interruptions due to childbirth or adoption—was calculated only on this reduced amount. This approach meant the supplement was effectively cut in half.
The court's decision relies on the wording of the law, which refers to the 'initial' pension amount. The Supreme Court emphasized that the supplement should be calculated from the full amount recognized at retirement, not from the reduced payment received while working. This means that pensioners who keep working should not lose part of the benefit they are entitled to.
The child supplement system has been in effect in Spain since 2016. Initially, it was available only to women, but since 2021 men have also been eligible. The current supplement is €36.9 per month for each child, with a maximum for four children. From 2016 to 2021, the amount was determined as a percentage of the pension: 5% for two children, 10% for three, and 15% for four or more.
The Supreme Court's decision specifically concerns cases where the supplement was calculated under the old system—as a percentage of the pension. Now, Social Security is required to recalculate payments for those who received the supplement only from half of their pension, and apply it to the full amount, regardless of whether the pensioner continues to work.
According to Talent24h, this decision could affect thousands of Spanish pensioners who combine their pension with employment. For them, it is not only a matter of fairness but also a substantial increase in their monthly income.
Experts note that such court rulings set a new precedent and may influence the future development of pension legislation in Spain. Importantly, the recalculation of supplements will not be done automatically: pensioners affected by the previous restriction should contact Social Security to request a revision.
