If you have any questions or would like to schedule an appointment, please contact Fernanda Vargas via WhatsApp or book a consultation through Calendly. This article provides a comprehensive guide to partial retirement in Spain for 2026, focusing on the replacement contract and the key deadlines, while analyzing the current regulations after the amendments introduced in Royal Decree-Law 11/2024 and the new provisions of Royal Decree-Law 19/2026.
What is Partial Retirement and How Does It Differ from Flexible and Active Retirement?
Partial retirement allows workers to reduce their working hours in order to balance professional and personal life while still remaining active in the workforce. Unlike flexible retirement, which typically involves rearranging working hours without the need for a replacement contract, partial retirement with a replacement contract necessitates hiring a new employee (the replacement) to cover the hours reduced by the retiring worker. Active retirement, on the other hand, involves receiving a full pension while continuing to work without any reduction in working time, making it a distinctly different option.
Ages in 2026: The Ordinary Retirement Age of 66 Years and 10 Months (or 65), and Up to Three Years of Early Retirement
In 2026, the ordinary retirement age is set at 66 years and 10 months for most workers, while those who have contributed for 38 years and 3 months or more can retire at 65. Under Article 215.2 of the LGSS, it is possible to take partial retirement up to three years before reaching the ordinary retirement age, which could allow some workers to opt for partial retirement at around 63 years and 10 months, or even 62 years for those with extended contribution periods.
Worker Requirements: 33 Years of Contributions, 6 Years of Service, and Full-Time Employment
To qualify for partial retirement through a replacement contract, the worker must have accumulated at least 33 years of contributions (or 25 years for those with a disability of 33% or more). In addition, a minimum of six consecutive years of employment immediately prior to the retirement is required, along with a full-time work contract. These requirements ensure that the measure benefits workers who have demonstrated long-term employment stability.
Reduction of Working Hours: From 25% to 75% and the Special Rule for the First Year (20%-33%)
Under partial retirement, the reduction in working hours ranges between 25% and 75% of a full-time equivalent. In cases where the early retirement period exceeds two years, a special rule applies whereby the first year must see a reduction between 20% and 33%, after which adjustments can be made within the general limits. This gradual adjustment provides a smoother transition toward full retirement.
The Replacement Contract Step by Step: Indefinite, Full-Time, and with a Minimum Contribution Base of 65%
The replacement contract is pivotal in partial retirement. It must be an indefinite, full-time contract, and the replacement worker’s contribution base cannot be lower than 65% of the average of the last six months of contributions of the worker opting for partial retirement. Moreover, this contract must remain in force for at least two years after the termination of the partial retirement period. Failure to adhere to these conditions can result in legal sanctions and the obligation to refund the pension received.
Employer Obligations and the Consequences if the Replacement Contract is Broken Early
The employer has multiple contractual and contribution obligations once a replacement contract is established. The employer must ensure the stability of the replacement employee for the stipulated duration. If the contract is terminated prematurely, the employer may face legal liabilities and be required to repay the pension amounts received by the partially retired worker. These measures are designed to safeguard the rights of both the retiring worker and the replacement.
Contributions During Partial Retirement: Why Full-Time Contribution Remains the Reference
One of the most significant features of partial retirement is that both the employer and the worker continue to make social security contributions as if the worker were employed full-time. This approach ensures that the reduction in working hours does not negatively impact the future amount of the pension, thereby preserving the worker’s contributory rights.
The Special Regime for the Manufacturing Industry, Extended Until December 31, 2029
A specific transitional regime exists for workers in the manufacturing industry (as outlined in the DT 4th LGSS), which has been extended until December 31, 2029. This regime includes differentiated rules regarding retirement age, percentages for working hour reductions, and mandatory indefinite replacement contracts. It is tailored for workers who face high physical demands or complex industrial processes, ensuring that sector-specific needs are met.
2026 Update: Royal Decree-Law 19/2026 and the Reactivation of Partial Retirement in the Public Sector
The Royal Decree-Law 19/2026 introduces key reforms for public sector employees. These changes aim to unlock partial retirement options for public employees, whose access had been hampered by rigid conditions requiring a simultaneous indefinite, full-time replacement contract. The new measures set out a phased system that links partial retirement to fixed positions already filled through public selection processes, as well as temporary contracts if needed. Additionally, the requirement that the replacement worker be unemployed or hold a temporary contract is removed in the public sector. This reform greatly enhances flexibility for public employees planning a gradual transition into retirement.
Why It’s Important to Review the Retirement Calendar Before the Ordinary Age Reaches 67 in 2027
The retirement calendar is subject to change. In 2027, the ordinary retirement age is expected to reach 67 (except for those with long contribution records, who may still retire at 65). For workers considering partial retirement, it is crucial to plan ahead and regularly review their contribution history and retirement calendar, as changes in retirement ages and conditions can affect the feasibility and benefits of the replacement contract scheme.
Foreign Workers: Recognizing International Contribution Periods, Totalization, and Bilateral Agreements
For foreign workers, it is essential to include contribution periods from abroad. The ability to totalize these periods is permitted under Regulation (EC) 883/2004 and through bilateral Social Security agreements. This provision is particularly beneficial for those who have worked in multiple countries, ensuring that their international contributions count towards the required years for accessing partial retirement.
How to Apply: Documentation, Deadlines at the INSS, and Common Pitfalls
The application process for partial retirement requires careful preparation of documents to be submitted to the National Social Security Institute (INSS). Essential documents include proof of contribution years, the replacement contract, and records of continuous employment. Meeting the established deadlines is crucial to avoid common errors such as incomplete documentation. Expert legal advice can be invaluable in navigating the process and ensuring that all requirements are met in a timely manner.
Frequently Asked Questions
Below are answers to some of the most frequently asked questions about partial retirement:
Is the pension maintained in full? Yes, because contributions continue to be made based on a full-time working schedule, safeguarding the future pension amount.
What happens if the replacement contract is terminated prematurely? The employer can be held liable and may be required to refund the pension payments received if the replacement is not maintained for the legally required period.
Can international contributions be totaled? Yes, provided that the required conditions set out by Regulation (EC) 883/2004 and the applicable bilateral agreements are met.
These clarifications are intended to provide a general overview; however, individual cases may require a more detailed analysis.
For any further questions or personalized advice, do not hesitate to contact Fernanda Vargas via WhatsApp or book an appointment using Calendly.