Adam Husicka
FREELANCERS in Spain are finally seeing their pensions climb above the €1,000 threshold, after years of lagging behind salaried workers.
According to new figures published on Tuesday by the Social Security ministry, the average retirement pension for the self-employed has reached €1,010/month in August, paid in 14 installments.
This marks a record high and confirms a steady rise since January, when the average first crossed into four digits.
The shift comes after major labour and tax reforms changed how freelancers contribute to the system.
Until 2023, most self-employed workers paid contributions based on the minimum threshold, keeping future pensions low. But under the new model, payments are tied to real declared income, with the first quota adjustments carried out in 2025.
READ MORE: Spain’s economy continues to shine as GDP grows by 0.7% in second quarter of 2025
As a result, pensions for freelancers have started to grow faster than those of salaried workers. Last year, their average retirement pay increased by 5.3%, compared with 4.7% among employees.
Overall, Spain is spending more than ever on pensions. In August, the government paid out €13.6 billion to cover 10.3 million benefits, a rise of 6.1% compared with a year earlier.
Part of this increase is due to the automatic revaluation of pensions, 2.8% on average and 6% for the minimum, as well as the fact that new retirees enter the system with higher earnings histories than those who leave it.
READ MORE: Spain to receive €23 billion in fifth round of EU funds
While the freelancer boost is one of the most striking effects of recent reforms, more changes to Spain’s labour laws are on the way in 2025.
The government is preparing to cut the standard working week to 37.5 hours, make digital time tracking mandatory, and guarantee the right to disconnect outside working hours.
A 5% increase in the minimum wage is also planned, which would push it close to 1,200 euros per month.
Other measures include higher compensation for unfair dismissal, paid parental leave of eight weeks, and a new statute to ensure fair treatment and pay for interns.
READ MORE: Spain’s unemployment hits 18-year low, but job growth slows in July
For freelancers, the rise in pensions signals the start of a long-awaited correction after decades of underpaying into the system. But with Spain’s overall pension bill growing rapidly, the challenge now will be ensuring the system remains sustainable for future generations.
Click here to read more Spain News from The Olive Press.
