Spanish Congress votes on pension reform for 40-year contributors

pension reform early retirement social security contribution years legislative vote

The Spanish Congress of Deputies is scheduled to vote this Tuesday, September 22, on whether to process a legislative proposal introduced by the Podemos party. The initiative aims to eliminate pension reduction coefficients for individuals who have contributed to the social security system for 40 or more years, allowing for early retirement without financial penalties.

If the proposal is admitted for processing, it would modify the General Law of Social Security to ensure that those with at least four decades of contributions do not face reductions in their pension amounts when accessing certain early retirement modalities. The proposal also includes a retroactive clause, which would allow current retirees with 40 years of contributions to request a recalculation of their pensions through the National Institute of Social Security (INSS).

The Spanish government has noted the significant fiscal impact of the measure, estimating a total cost of approximately 3,358 million euros. This includes 1,345 million euros for voluntary early retirement and 2,013 million euros for involuntary early retirement. While the government has not vetoed the processing of the bill on budgetary grounds, it has highlighted the substantial cost to public finances.