{"id":3174,"date":"2025-10-05T15:05:41","date_gmt":"2025-10-05T15:05:41","guid":{"rendered":"https:\/\/pgfiscal.com\/?p=3174"},"modified":"2025-11-12T20:39:56","modified_gmt":"2025-11-12T20:39:56","slug":"how-to-recibe-full-retirement-and-work","status":"publish","type":"post","link":"https:\/\/pgfiscal.com\/en\/como-cobrar-el-100-de-la-pension-y-trabajar\/","title":{"rendered":"How to collect the 100% pension and Work"},"content":{"rendered":"
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\ud83e\uddfe New Supreme Court ruling: compatibility between pension and self-employment on low income<\/h2>\n\n

\nMore and more retired people want to remain active professionally, doing small jobs or freelance work.\nUntil now, there were doubts as to whether it was possible to do so. without losing the retirement pension<\/strong>. \nA new Supreme Court ruling<\/strong> has shed light on this issue, providing important clarification:\n\ud83d\udc49 the limit of the Minimum Interprofessional Wage (SMI)<\/strong> shall be calculated on the basis of net yields<\/strong>, and not to gross income.\n<\/p>\n\n

\u2696\ufe0f What does the law say?<\/h3>\n\n

\nThe article 213.4 of the General Social Security Law (LGSS)<\/strong> states that:\n<\/p>\n\n

\n\u201cReceipt of a retirement pension shall be compatible with self-employment, the total annual income of which does not exceed the annual minimum wage. \nThose who carry out such economic activities shall not be obliged to pay social security contributions\u201d.\u201d\n<\/blockquote>\n\n

\nThis means that it is possible to receive a full pension and remain self-employed<\/strong>, \nprovided that the net annual income does not exceed the current SMI<\/strong>.\n<\/p>\n\n

\ud83d\udcbc Pension-compatible activities<\/h3>\n\n

\nUntil now, the usual interpretation of the rules has been that if the pensioner has a premises, office or establishment open to the public<\/strong>, ,\nwas understood to develop a usual economic activity<\/strong>, ,\nand therefore had to registering with the Special Regime for Self-Employed Workers (RETA)<\/strong> and quote. \n<\/p>\n\n

\nHowever, the new judgment of the Supreme Court<\/strong> clarifies that Article 213.4 of the LGSS \nmakes no reference to the existence of an establishment or to habitual residence<\/strong>. \n<\/p>\n\n

\nTherefore, what is relevant is not whether or not there is premises, but rather the economic volume of the activity<\/strong>:\n\ud83d\udc49 while the annual net income does not exceed the Minimum Interprofessional Wage (SMI).<\/strong>, ,\nthe retired person can combine full pension payments<\/strong> with such occasional or sporadic work,\nwith no obligation to contribute to the RETA.\n<\/p>\n\n

\ud83e\uddee Income vs. net returns: what's the difference?<\/h3>\n\n

\nUntil now there was confusion as to whether the SMI limit applied to gross income or to actual profits. \nThe Supreme Court<\/strong> has clarified that the calculation should be made on the basis of the NET YIELD<\/strong>, i.e:\n<\/p>\n\n

Total Income - Deductible Expenses = Net Income<\/strong><\/p>\n\n

\nThis is especially relevant for professionals who, although they invoice more than the SMI, have associated expenses (office rent, materials, transport, etc.) that reduce their real profit below the threshold.\n(office rent, materials, transport, etc.) that reduce the real profit below the threshold.\n<\/p>\n\n

\ud83d\udcd1 Tax obligations<\/h3>\n\n

\nAlthough Social Security does not require contributions in such cases, there are tax obligations<\/strong> that must be complied with:\n<\/p>\n\n