Spain: 2025, Looking Ahead

Now that 2025 has arrived, Spain’s labour framework stands on the cusp of significant transformations. From adjustments to the minimum wage and working hours to newly proposed regulations on digital disconnection, equality measures for the LGBTIQ community, and updates on dismissal compensations, the upcoming year promises a range of legislative and policy changes. These initiatives aim to modernize employment relations, better protect employees’ rights, and align national regulations with European guidelines and global employment standards. The following newsletter provides an overview of these possible reforms, helping both employers and employees prepare for the evolving legal landscape.

1. Minimum Interprofessional Wage for 2025

In yearly fashion, the Minimum Interprofessional Wage is updated, increasing little by little the minimum wage applicable to all employees working under Spanish Employment Law.

In this context, Royal Law-Decree 9/2024 of December 23^rd, extends the validity of Royal Decree 145/2024 of February 6^th, which set the minimum interprofessional wage for 2024.

This measure is implemented to avoid the disappearance of this Minimum Wage threshold at the end of year 2024, as the regulation that approved it was of a temporary nature. The extension will be maintained until the approval of a new royal decree that establishes the minimum wage for 2025, which approval is expected in the first two months of the year at max.

As the Interprofessional Minimum Wage in 2023 was at 15,120.00 €.- gross annually, and  is at the moment at 15,876.00 €.-, it is expected to be increased by an amount proportionate to the difference between 2023’s and 2024’s Minimum Wage.

2. Reduction of Working Hours and Digital Disconnection

At the end of 2024, an agreement was reached between the Ministry of Labour and Social Economy and the trade unions to reduce the maximum working week to an annual average of 37.5 hours per week by 2025 (at the moment it is at 40 weekly hours).

The government undertook to promote a legislative initiative that includes, among other measures, the obligation for the negotiating committees of collective agreements that exceed this new working day to adjust their provisions before 31 December 2025.

Likewise, part-time contracts with a working day equal to or greater than the maximum working day will automatically become full-time, and those with a shorter working day will see a proportional increase in their pay.

The text also reinforces the inalienable right to digital disconnection outside working hours, but will need additional development in the future. At the moment, Spanish Legislation only has in display a single provision, which is article 88 of Organic Law 3/2018 of Data Protection, so it could be expected that a new Act solely dedicated to Digital Disconnection of Employees could be implemented this year.

3. Recording of Working Hours and Digitalisation

The draft bill outlining the reduction of working hours includes far-reaching changes in the regulation of the recording of working hours. Companies will have to have remotely accessible working time records both for the Labour and Social Security Inspectorate and for employees’ representatives. In the event of non-compliance with record-keeping obligations (through absence or falsification of data), an infringement will be imposed for each person concerned, with fines ranging from 1,000 euros to 10,000 euros, exceeding the previous range of 751 to 7,500 euros.

4. Measures for Real and Effective Equality for LGBTQI People

By 10 January 2025, all companies with more than 50 employees must have negotiated a set of measures and resources to achieve real and effective equality for LGBTIQ people.

This includes a protocol for action in cases of harassment or violence against LGBTIQ people, applicable to own staff, contractors and subcontractors, as well as employees of Temporary Employment Agencies, suppliers, clients and visitors. Such measures must be agreed through collective bargaining or through a company agreement.

If no agreement is reached, the measures set out in Royal Decree 1026/2024 will be directly applicable in the areas of recruitment, training, professional promotion, harassment and violence. However, it is recommended to tailor-make these procedures and measures to the inner workings of each Company.

5. Severance Pay

The possibility of reforming the rules on compensation for unfair dismissal to consider the actual damage suffered and the individual circumstances of the dismissed person is being considered, in line with the recommendations of the European Committee of Social Rights and the Council of Europe.

Although the Supreme Court has recently ruled that courts cannot increase compensation beyond the provisions of article 56 of the Employees’ Statute (which consists of 33 days of salary per year worked, with a maximum of 24 months of payment), the Ministry of Labour has announced that it is working on a legislative proposal to amend the current regulation. The aim is to ensure adequate compensation to deter unjustified dismissals and to comply with the requirements of the European Social Charter.

6. Termination of Employment Contract Due to Permanent Incapacity

A draft law seeks to amend Article 49.1 of the Employees’ Statute so that the declaration of an employee’s absolute or total permanent incapacity does not automatically terminate the contract.

The employment relationship may only be terminated when it is not possible to make reasonable adjustments or a change of vacant and available position in line with the professional profile and compatible with the worker’s situation, provided that such adjustments do not place an excessive burden on the company. This reform aims to bring Spanish legislation into line with the ruling of the Court of Justice of the European Union (Case C-631/22) and to eliminate discrimination on the grounds of disability or health.

7. Reform of the law on the prevention of Occupational Risks

The reform of the Law on Prevention of Occupational Risks is expected to be undertaken during 2025. The purpose of this update is to adapt the law to the new social and technological realities, to reinforce the integration of prevention in companies, and to pay special attention to SMEs.

It is expected to include specific measures to intensify the prevention of risks derived from the use of technologies, exposure to certain chemical substances, high temperatures, adverse climatic phenomena, and psychosocial risks.

However, as there is no Law draft at the moment, everything could be but speculation.

8. Status of Trainees

The so-called Trainee Statute could enter into force by 2025, after years of discussions on its implementation.

On 11 December 2024, the Ministry of Labour and Social Economy submitted for public hearing the Preliminary Draft Law on individuals undergoing non-work practical training in the company environment.

This text proposes to regulate the maximum number of trainees per company, limits on traineeship hours, the functions of the tutor and the compensation of expenses. It also provides for a clearer demarcation between training and work-related tasks, minimum risk protection obligations and guaranteed work-life balance rights.

9. Social Security Contributions

In 2025, the contribution limits with a minimum and a maximum base will be maintained.

For wages exceeding the maximum base, however, there will be an additional solidarity contribution: 0.92% for the part that exceeds the maximum base by up to 10%, 1% for the part between 10% and 50% of the maximum base, and 1.17% for the part that exceeds 50%. This rate will increase gradually until 2045, and may reach between 5.50% and 7%.

10. Sustainable Mobility Plans

The Sustainable Mobility Law is expected to be passed, the main objective of which is to encourage the use of environmentally friendly means of transport, adapting urban planning regulations to reduce the carbon footprint and improve accessibility.

In the workplace, this law will require companies with more than 500 employees per workplace to draw up sustainable mobility plans, in collaboration with employees’ representatives, in order to promote safer and cleaner journeys for the entire workforce.