The seventh transitional provision of the General Social Security Act provides that, on a transitional basis and until 2027, the retirement age and the contribution bases required for access to the retirement pension will be increased annually.
Specifically for 2021, those workers interested in accessing the retirement pension at the age of 65 will have to prove a minimum contribution period of 37 years and 3 months. Otherwise, access to ordinary retirement will require the accreditation of 66 years. With regard to the new features concerning the calculation of the amount of the retirement pension, which, let us remember, requires two steps:
Determining the regulatory base
As of 1 January 2021, and by virtue of the provisions of Transitional Provision Eight of the General Social Security Act, the regulatory base of the retirement pension will be the result of dividing by 336 the contribution bases during the last 24 years (288 months) immediately prior to the month before retirement age.
Calculation of the percentage of the regulatory base
In accordance with the provisions of Article 210 and the Ninth Transitional Provision of the General Law on Social Security
- For the first 15 years of contributions, a percentage of 50% of the regulatory base is applied.
- And as a novelty in 2021, from the 16th year of contribution, the percentage is increased for the first 106 months by 0.21% for each month, and for the following 146 months by 0.19% for each additional month.
Consequently, in order to qualify for the pension of retirement in 2021 with 100% of the regulatory base, 36 years (15 years + 106 months + 146 months) are required.
As a last point, it is worth highlighting the change in the access requirements for partial retirement, according to which those workers interested in accessing the partial retirement pension at 62 years of age must prove a minimum contribution period of 35 years and 3 months, or an age of 63 years with a contribution period equal to or greater than 33 years. As for the contribution base, in accordance with the transitional application of the Tenth Transitional Provision of the General Social Security Act, in 2021, 90% of the full-time contribution base will be applied.
The AddVANTE Labour Law Department remains at your disposal for further information or to resolve any queries that may arise in relation to this article.