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๐ Income breakdown in partial retirement
Partial retirement in Spain allows workers who reach retirement age to reduce their working hours and receive a proportional retirement pension while continuing to work part-time. It is a popular transition mechanism for employees to scale back work while maintaining financial stability.
๐ How does partial retirement work?
Upon entering partial retirement, your regular working day is reduced by 25% to 50% (or up to 75% if your employer hires another worker under a hand-over contract / contrato de relevo). Your gross salary is reduced in exactly the same proportion. Social Security then compensates the hours reduced by paying you a pension proportional to that reduction. Both income streams are fully compatible.
๐ Worked calculation examples
Here are two common scenarios based on the 2026 regulatory framework.
Example 1: Standard partial retirement (no hand-over contract)
- Remaining working hours: 50%
- New salary paid by the employer: โฌ1,500.00
Example 2: Maximum partial retirement (with a hand-over contract)
- Remaining working hours: 25%
- New salary paid by the employer: โฌ1,000.00
โ Frequently Asked Questions (FAQ)
The minimum age varies depending on your contribution history. In 2026, with a hand-over contract, you can retire partially starting at 62 years and 6 months (with 36 years contributed) or 64 years (with 33 years contributed).
It is an employment contract where the company hires an unemployed person or an employee with a fixed-term contract to cover the working hours vacated by the partially retiring employee.
Under Spanish pension regulations, the company must contribute based on 100% of the contribution base that would have corresponded if the worker continued at full-time hours, ensuring your future full retirement benefit is not reduced.