The Laws on General State Budgets establish a maximum annual limit for public pensions which
cannot be exceeded by the public pension or sum of pensions a single beneficiary receives.
The only pensions excluded from this limit are those stemming from
acts of terrorism and the complementary benefit awarded by an administrative mutual fund (MUFACE, MUGEJU and ISFAS) or by Social Security by reason of “Major Invalidity” (50% of the pension).
2020, this amount stands at
2.683,34 euros in full per month when the holder is entitled to receive 14 monthly payments, or otherwise
37.566,76 euros in full per year.
For these purposes, article 42 of Law 37/1988 of 28 December establishes that::
the following shall have the status of public pensions:
The following shall not have the status of public pensions those which are paid through employment pension plans or collective insurance contracts, including those signed by business pension mutual companies promoted by the Governments, bodies, entities and companies referred to in the second final provision of the consolidated text of the Law Regulating Pension Plans and Funds, approved by Legislative Royal Decree 1/2002, of 29 November, and in the terms expressed therein.