Government nears full return of early retirement for public servants

After a year of agonizing waits, a crucial deal is on the verge of unlocking early retirement options for 700,000 public sector employees – a victory forged in the crucible of persistent worker demands.

A long-awaited solution after pension reforms

The Spanish government is finalizing a Royal Decree-Law that promises to reinstate partial retirement for civil servants, a benefit effectively stripped away following the April 2025 pension reforms. This move represents a significant concession to unions and signals a potential end to a year-long stalemate for those who’ve met the eligibility criteria.

The deal: a union-government partnership

The agreement, brokered with CCOO and UGT, directly responds to mounting pressure from labor groups following the controversial Real Decreto-Ley 11/2024, which mandated the use of permanent, contract-based replacements – effectively blocking countless applications due to difficulties integrating these requirements into public employment recruitment processes.

The 35-hour workweek and municipal expansion

Adding another layer to the complexity, the implementation of a 35-hour workweek across Spanish municipalities further complicated the situation. This development, alongside the impending legislation, highlights the government's attempt to balance labor demands with broader administrative shifts.

Relevos: the key to access

The fundamental hurdle stemmed from the new regulations, established via the 2025 Modifications to the Workers’ Statute and Social Security legislation, which stipulated that partial retirement must be facilitated by a full-time, permanent replacement – a requirement that proved nearly insurmountable for fixed-term employees, representing half of the nation’s 1.4 million public sector workforce. The initial resolution by the State Secretary of Public Function linked this requirement to specific replacement rates and public employment opportunities (OEPs), processes frequently plagued by delays.

Immediate access – a collaborative approach

The proposed solution offers two pathways for compliance: leveraging existing recruitment processes to secure replacements, or utilizing temporary employees directly linked to the OEP, ensuring immediate access for eligible individuals upon meeting age and contribution criteria. CCOO, a key negotiator, emphasizes this dual approach guarantees “immediate access when requirements are met, facilitating simultaneous retirement and interim coverage.”

Parliamentary approval remains a key obstacle

Despite the agreement, the Royal Decree-Law still requires congressional validation within a month, a crucial step that could be subject to political maneuvering. Unions are demanding a strictly non-controversial package, excluding potentially contentious adjustments to temporary incapacity management (IT) negotiations – a point of ongoing debate.

A return to established practices

The legislation harkens back to pre-2025 regulations outlined in the General State Administration Convention (AGE), which already permitted partial retirement for full-time, fixed-term employees with at least 33 years of service – provided a 25% reduction in workload was implemented, maintaining professional status and position, barring restructuring. Furthermore, the INSS has already finalized coefficients for early retirement, revised as of January 2026.

Looking ahead: addressing remaining concerns

While the government anticipates approval, unions express concerns about extending the right to career officials, interim staff, and temporary employees – a provision currently embedded as an amendment within the ongoing Public Function Law project, stalled in the Senate. This delay risks hindering the smooth transition for a vital sector, including healthcare, education, and local services, where partial retirement facilitates generational turnover.