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Practical Guide to Income Tax 2025. Part 1.

Example 3: worker with a pension of less than 6,500 euros

Ms. CRM, a resident of the Community of Madrid, worked as a nursing assistant in a health center until August 2025, when she turned 65, at which point she accessed ordinary retirement. During that year he received the following income:

  • Total earnings from employment derived from your employment relationship up to August: 17,500 euros. Social Security Contributions: 595 euros.

  • Contributory retirement pension (September-December): 3,800 euros.

  • Retention: 1,350.15 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:

    Ms. CRM will be entitled to the deduction because she has obtained gross income from work derived from the effective provision of services corresponding to an employment or statutory relationship of less than 18,276 euros and does not exceed the limit of 6,500 euros established for income other than that which generates the right to the deduction (pension of 3,800 euros).

    Deduction amount:

    Since the total amount of employment income is between 16,576 and 18,276 euros, the amount of the deduction will be the result of:

    340 – [0.2 x (17,500 – 16,576)] = 155.20 euros.

    Deduction limit:  

    Note that to determine the part of the sum of the full state and regional tax liability that corresponds to these net earnings, these full earnings must be taken into account, reduced exclusively by those deductible expenses linked to them.