I am unemployed: How will it affect my retirement pension?

 

Being unemployed not only affects the current job situation, but also the future financial situation. One of the most relevant aspects to consider is how this period influences the retirement pension. The key is to distinguish whether the worker receives a benefit from the SEPE or has no coverage at all.

If you are receiving unemployment benefits or contributory allowance

When a person receives the contributory unemployment benefit, the State Public Employment Service (SEPE) takes care of the Social Security contributions.
The SEPE pays the employer's share and deducts the worker's share from the benefit amount.

How is the contribution base calculated?

During the unemployment benefit period, the contribution base is calculated based on the earnings base of the benefit, which is equivalent to the average of the earnings from the last six months of contributions.
It does not depend on the percentage received from the benefit (70% or 60%), but on the complete earnings base, which will be used for future benefits, including retirement.

For what contingencies are contributions made?

While receiving the contributory benefit, contributions are made for common contingencies (retirement, permanent disability, health care, death and survival), but not for unemployment, work accidents, FOGASA, or vocational training.

If you receive an unemployment subsidy

Not all subsidies contribute to retirement.

• The subsidy for individuals over 52 years old does contribute, based on 125% of the minimum contribution ceiling.

• Other subsidies (family assistance, insufficient contribution, among others) do not generate contributions, creating contribution gaps that can reduce the future pension.

In both cases, contribution time continues to accumulate, as long as the subsidy contributes to Social Security.

If you are unemployed and do not receive any benefits

When neither a benefit nor a subsidy is received, the period is not considered as contributed. This can reduce both the total number of years contributed and the applicable percentage on the earnings base.

For example, in 2025, to receive 100% of the earnings base, 36 years and 6 months of contributions are required. Any prolonged interruption can significantly reduce the final pension amount.

An alternative to avoid these gaps is to enter into a special agreement with Social Security, so that the worker continues to contribute voluntarily during unemployment.

How unemployment affects the pension depends directly on the type of benefit received.
Receiving unemployment benefits or the subsidy for individuals over 52 years old allows for continued contributions; however, having no income implies losing contribution time.
Planning ahead and considering options such as a special agreement can be key to maintaining an adequate pension in the future.