Minimum Supplements to Contributory Pensions
Complementos a mínimos de las pensiones contributivas
Coverage
- Pensioners of contributory retirement pensions who legally reside in Spain and whose income (incl. pension) does not reach a legally established minimum amount.
Financing
- Minimum supplements are non-contributory in nature. The scheme is entirely tax-financed out of the general budget.
Administration
- The minimum supplements to social security pensions are managed by the ‘National Social Security Institute’ (Instituto Nacional de la Seguridad Social, INSS).
Qualifying Conditions
- The person must have habitual residence in Spain, even if he/she has stayed abroad, provided that these periods do not exceed 90 calendar days per calendar year, or when the absence from Spanish territory is due to duly justified illness.
- The person must be a beneficiary of a contributory pension.
- Benefits are income-tested (incl. pension): the person must receive a low contributory pension and must not receive income from work, capital or economic activities and capital gains during 2020 (in accordance with the concept established for such income in the Personal Income Tax), or receives such income (excluding expenses deductible in accordance with tax legislation) without exceeding the amount established annually by the corresponding General State Budget Law.
Benefits
- The amount of the minimum supplements is the difference between the following two amounts: a) the sum of the beneficiary's income (income from work, capital or economic activities and capital gains during 2020) and the contributory pension on an annual basis, and b) the sum of the income limit (EUR 7,638 per year in 2020) and the amount of the minimum contributory pension (EUR 683.50 per month in 2020).
- The amount of these supplements may not exceed the amount established annually for non-contributory retirement pensions (EUR 5,538.40 per year in 2020).
- The amount shall be adjusted if there is a dependent spouse (i.e. who is living with the pensioner and is financially dependent on him/her).
- Supplements are not subject to income tax.
Coverage
Financing
Administration
Qualifying Conditions
Benefits
- Pensioners of contributory retirement pensions who legally reside in Spain and whose income (incl. pension) does not reach a legally established minimum amount.
- Minimum supplements are non-contributory in nature. The scheme is entirely tax-financed out of the general budget.
- The minimum supplements to social security pensions are managed by the ‘National Social Security Institute’ (Instituto Nacional de la Seguridad Social, INSS).
- The person must have habitual residence in Spain, even if he/she has stayed abroad, provided that these periods do not exceed 90 calendar days per calendar year, or when the absence from Spanish territory is due to duly justified illness.
- The person must be a beneficiary of a contributory pension.
- Benefits are income-tested (incl. pension): the person must receive a low contributory pension and must not receive income from work, capital or economic activities and capital gains during 2020 (in accordance with the concept established for such income in the Personal Income Tax), or receives such income (excluding expenses deductible in accordance with tax legislation) without exceeding the amount established annually by the corresponding General State Budget Law.
- The amount of the minimum supplements is the difference between the following two amounts: a) the sum of the beneficiary's income (income from work, capital or economic activities and capital gains during 2020) and the contributory pension on an annual basis, and b) the sum of the income limit (EUR 7,638 per year in 2020) and the amount of the minimum contributory pension (EUR 683.50 per month in 2020).
- The amount of these supplements may not exceed the amount established annually for non-contributory retirement pensions (EUR 5,538.40 per year in 2020).
- The amount shall be adjusted if there is a dependent spouse (i.e. who is living with the pensioner and is financially dependent on him/her).
- Supplements are not subject to income tax.
Legal Basis: Royal Legislative Decree 8/2015 of 30 October approving the consolidated text of the General Social Security Act (Real Decreto Legislativo 8/2015, de 30 de octubre, por el que se aprueba el texto refundido de la Ley General de la Seguridad Social); General State Budget Law (Ley de Presupuestos Generales del Estado).