Why Spain’s self-employed face lower pensions than employees

Wednesday 06 August 2025 - 16:50

By: Dakir Madiha

Why Spain’s self-employed face lower pensions than employees

The challenges of being self-employed in Spain extend far beyond managing day-to-day business operations. For autónomos, retirement pensions represent another significant hurdle, as they receive markedly less than their salaried counterparts, despite contributing a similar percentage of their earnings to social security.

A stark pension disparity

According to the Ministry of Inclusion and Social Security, the average retirement pension for self-employed workers in Spain is €1,008.80 per month, significantly lower than the €1,665.50 monthly average received by employees. This translates to a gap of €657 each month—or over €9,200 annually.

The disparity is even more pronounced when examining gender differences. Self-employed men receive an average pension of €1,150.10, while women receive just €863.97—reflecting the challenges women face in contributing consistently due to childcare and other responsibilities.

The root of the issue: Contribution bases

Spain’s pension system calculates retirement benefits based on an individual’s social security contributions throughout their working life. For salaried employees, contributions are shared between the worker and their employer. Self-employed workers, however, must shoulder the entire burden themselves.

While employees contribute a percentage of their monthly salary, self-employed workers’ contributions are tied to their net profits and their selected contribution base. These bases range from a minimum of €653.59 to €1,928.10 for lower earners and a maximum of €718.94 to €4,909.50 for higher earners. Monthly social security fees for autónomos typically range between €200 and €590.

Why most autónomos choose the minimum base

Faced with high business costs and fluctuating incomes, an overwhelming 83 percent of Spain’s 3.4 million self-employed workers contribute at the minimum base. Only 2.1 percent opt for a contribution base comparable to that of employees. This decision, while financially practical in the short term, creates long-term consequences, as lower contributions result in reduced pension benefits.

Regional variations and potential solutions

Government data reveals that in more than 60 percent of Spain’s provinces, the average self-employed pension barely exceeds €1,008 per month. Nowhere in the country does it reach the minimum wage projected for 2025.

To address this issue, financial experts recommend gradually increasing one’s contribution base in the years leading up to retirement. By doing so, autónomos can improve their pension prospects, albeit at the cost of higher financial pressure during their working years.

Ultimately, Spain’s self-employed workers face a difficult balance: maintaining financial stability while planning for a more secure retirement. For many, systemic changes may be needed to ensure a more equitable system.