The new formula to calculate the pension that will be applied from January 2026
Social Security will introduce a new system to calculate the regulatory base of the pension retirement starting in 2026. It will be a much more flexible model that will allow a better calculation of each person’s career path. This modification is included in Royal Decree-Law 2/2023, of March 16. Driven by José Luis Escrivásets the reform of article 209 of the General Law of Social Security.
It will be applied progressively over a period that will last until 2044. This mechanism will replace the current method that takes into account the last 25 years of contributions. This means that from January 2026 it comes into force. a dual system in which Social Security will choose ex officio the calculation that will be most favorable for each person between two different options: the traditional one (the last 25 years of contributions) and the new formula, which will discard the worst years of the worker’s working life.
How the regulatory base of the pension is calculated from 2026
For 2026, retirements will be compared as follows: divide the last 300 contribution bases by 350 or, on the other hand, divide the 302 best bases within the previous 304 months by 352.33. and there The one that gives the greatest presentation will be applied to the person, that is, the highest.
This is how it will be done until 2037. For example, by 2027, 304 contribution bases will be used within 308 months with a divisor of 354.67 or in 2028the regulatory base of the pension will result after dividing by 357 the sum of 306 contribution bases of the highest amount in the period of the 312 months immediately preceding the month prior to the causing event.
The progression will end, as we have said, in 2037 when you can choose between the last 25 years or the 27 best within the 29 prior to the causative event. That is to say, the two worst working years can be eliminated of that period.
This system will remain active between 2037 and 2040, but between 2041 and 2043 a new period will be establishedapplying, if more favorable, the basis of the last 25.5 to 26.5 years. And already in 2044this calculation will only be done with the 324 best bases among the last 348.
It must be remembered that the ‘Retirement Pension Simulator’ of the Ministry of Inclusion, Social Security and Migration already has this method. This plan contemplates favoring workers and being able to adjust the calculation of the regulatory base to those who have suffered irregularities in their professional career.
