A retired man who has not reached retirement age, and a retired unmarried woman who has not yet reached retirement age who receive pensions, must pay insurance contributions on half of the income from the pension.
The pension payer must deduct the insurance contributions at source from the pension and transfer the payments to the National Insurance Institute. “Pension” for the purposes of insurance contributions payment is a benefit paid by force of a law or a labor agreement to an employee, or to a person who was an employee, after that person has partially or completely retired from work.
A pension paid to the retiree's survivors is exempt from payment of insurance contributions.
A person on early retirement who is an employee or self-employed person, or both, must pay insurance contributions from each of his/her sources of income, up to the maximum income liable for the payment of insurance contributionsThe amount of maximum income on which insurance contributions are paid. Insurance contributions are not paid on any income that is above this maximum. The maximum is updated every year in accordance with the rate of the rise in the Consumer Price Index. . The aforementioned retiree whose liable income from all sources is above the maximum income liable for payment of insurance contributions is entitled to a refund of the insurance contributions paid above the maximum sum.