Since October 1, 2023, part-time work has been equated with full-time work for the purpose of calculating the contribution periods required for the recognition of retirement and other pensions.
Since October 1, 2023, part-time work has been equated with full-time work for the purpose of calculating the contribution periods required for the recognition of retirement, permanent disability, death and survival, temporary disability, childbirth and childcare pensions.
This is a relevant modification to the General Social Security Law (LGSS), which came into force on October 1, 2023. Specifically, from that date, part-time work will be equated with full-time work, for the purpose of calculating the periods necessary to qualify for benefits, the so-called qualifying periods.
This modification has a significant impact on the computation of the contribution periods required for the recognition of various social security benefits, such as retirement, permanent disability, death and survival, temporary disability, birth, and childcare.
Significant change in the computation of contribution periods
The change in question is embodied in Royal Decree-Law 2/2023, of March 16, which introduces an amendment to Article 247 of the LGSS. This amendment establishes that “part-time work is equated with full-time work for the purpose of calculating the contribution periods for the recognition of retirement, permanent disability, death and survival, temporary disability, birth and childcare pensions“. This means that the periods contributed will be considered as full days, regardless of the length of the working day worked in each of them.
In other words, an employed individual working eight hours a day will contribute the same as a part-time employee. This eliminates the overall coefficient of partiality and puts an end to the proportionality rules that were previously applied to accredit the contribution periods required to access benefits. From now on, the same contribution time will be required for both full-time and part-time workers.
Retroactivity: application to periods worked part-time before and after October 1, 2023.
It is important to note that this modification operates retroactively with respect to periods worked part-time. This means that it affects both periods before and after October 1, 2023, as regards access to and calculation of Social Security benefits. However, it is essential to understand that this modification does not have retroactive effect for the causative events (when the right is generated) prior to said date.
This modification represents a significant change in the way contribution periods are accounted for and may have a major impact on the social security benefits of part-time workers.
It is important to highlight that this equality in the computation of contribution periods benefits workers in terms of access to Social Security benefits, such as retirement, permanent disability, among others since they will now be required the same contribution time as full-time workers to access these benefits.
For further information, please consult with Labor consulting
