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Practical Guide to Income Tax 2025. Part 1.

Example 2: worker who retires in 2025 with a pension (and other income) exceeding 6,500 euros

Mr. JRM worked in 2025 as a full-time maintenance manager at an industrial company until March, when he retired permanently, ceasing to provide his services.

During the year 2025 it only obtained:

  • Total earnings from employment derived from your work activity up to March: 6,000 euros. Social Security Contributions: 500 euros.

  • Contributory retirement pension from April to December 2025: 12,000 euros.

  • Account interest: 150 euros.

Determine the amount of the deduction for obtaining income from work that you would be entitled to apply according to the data provided.

Solution:

In accordance with the sixty-first Additional Provision of the Law of IRPFABBRTaxpayers will be entitled to the deduction provided they do not have income, excluding exempt income, other than the aforementioned employment income (i.e., employment income derived from the effective provision of services corresponding to an employment or statutory relationship) exceeding 6,500 euros.

In this case, although the total employment income derived from the effective provision of services corresponding to an employment or statutory relationship (€6,000) is less than €18,276, Mr. JRM is not entitled to the deduction for employment income, since he has received income other than that which generates the right to the deduction (pension and interest) for a total of €12,150, which exceeds the limit of €6,500 established by the Sixty-First Additional Provision of the Law of IRPFABBR.