In April 2025, retirees across Spain are experiencing a pleasant surprise as many are receiving higher pension payments thanks to the recent updates to the supplement aimed at reducing the gender gap. This supplement, which was revalued this year, aims to compensate for the career impacts of motherhood and childcare, and it has been a part of the contributory pension system since its introduction in 2021.
The revaluation has led to some pensions increasing by more than 140 euros a month. Specifically, the amounts range from 35.90 euros for those with one child to 143.60 euros for retirees with four or more children. This supplement is paid in 14 installments, which translates to an additional 2,010 euros annually for many retirees. Importantly, this increase is not a temporary bonus but rather a structural enhancement to the pension, representing a significant step toward a more equitable pension system.
To qualify for this supplement, women must have at least one child and be receiving a contributory pension—whether from retirement, permanent disability, or widowhood—recognized after February 4, 2021. Men can also benefit from this supplement if they can prove that their careers were affected by the birth or adoption of a child or if they are widowers with children entitled to an orphan's pension. Over 10,000 men have already applied for this supplement, indicating a shift in societal recognition of diverse family and work realities.
The recent increase in the supplement is part of broader changes in Spain’s pension system, which also include enhancements to the conditions under which retirees can combine their pensions with work. On January 22, 2025, Royal Decree Law 11/2024 was validated, which aims to encourage the voluntary extension of working life and improve the compatibility between retirement pensions and work. This law fully came into effect on April 1, 2025.
Under the new regulations, access to partial retirement has been facilitated for those who have reached the legal retirement age, as the requirement for a formal relief contract has been eliminated. For those who have not yet reached the legal age, the period to qualify for this option has been extended from two to three years prior to the legal retirement age. However, the conditions for hiring replacement workers have been tightened, allowing only full-time indefinite contracts that must be maintained for at least two years after the partial retirement situation ends.
Additionally, the compatibility period for working while receiving a pension now requires a contribution of 80% of the full-time salary base, rather than a percentage based on the actual hours worked. This change aims to ensure that the transition into partial retirement is effective and supports generational employment stability.
Moreover, starting in 2026, the method for calculating retirement pensions will undergo a significant transformation as a dual system will be implemented. This change will allow retirees to choose between two calculation models, marking a shift from the current singular method. Currently, to receive 100% of the pension, one must have contributed for 36 years and 6 months. The pension amount is calculated based on the contribution bases from the last 25 years, with the two years prior to retirement using nominal values.
The new system, which will be transitional from 2026 to 2044, will allow individuals to discard the two worst years of their contribution history when calculating their pension. This adjustment is particularly beneficial for those who have experienced gaps in their employment or have faced difficulties late in their careers. The Social Security Administration will automatically apply the most advantageous calculation method for each retiree, relieving them of the burden of making that choice themselves.
These changes, while not solving all disparities within the pension system, represent significant progress toward a more equitable framework. The updates to the gender gap supplement and the new methods for calculating pensions reflect a growing acknowledgment of the diverse challenges faced by individuals in their working lives. As Spain continues to navigate the complexities of its pension system, these reforms may provide much-needed relief and support for many retirees.
In summary, April 2025 marks a pivotal moment for pensioners in Spain, particularly those with larger families, who will see an increase of up to 143.60 euros per month. With around one million pensions already incorporating this supplement, the government is taking steps to ensure that the financial burdens of parenthood and caregiving are recognized and compensated in the pension system.
