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Businesses operating in Spain face changes to employment legislation in 2025, and potential updates to existing legislation that organisations may need to prepare for.
Every effort has been taken to ensure this information is accurate and correct at the time the update was published.
2025 legislative changes/updates
Minimum Wage
The Minimum Interprofessional Wage (SMI) has increased to €1,191 per month, across 14 payments.
This came into effect from January.
Solidarity social security contribution
A new measure raises social security contributions for employees with salaries surpassing the maximum contribution base (which was set in 2024 at € 4,720.50). Taking a phased approach to implementation approach until 2045, the additional contribution is intended to target higher paid workers and companies. Contribution rates for 2025 are as follows: first tier (Up to 10% above the maximum base) - 0.92%, second tier (From 10% to 50% above) - 1%, and third tier (Above 50%)- 1.17%.
This came into effect from 1st January.
Workers' Statute and LISOS Reform
Draft law includes a reduction of the working work to 37.5 hours, as well as the right to digital disconnection. Further focus on the obligation for businesses to record time keeping is included in the plans, with fines reaching up to €10,000 per worker where businesses fail to do so.
There is no agreed implementation date confirmed yet.
Removing permanent incapacity as automatic termination grounds
Under the proposed amendment to Article 49 of the Workers’ Statute, set to take effect in early 2025, employers will no longer be able to automatically terminate an employee due to permanent incapacity. Employees will instead have 10 days from being deemed permanently incapacitated to request transfer to an alternative, more suitable, role, or a job adaptation.
Temporary incapacity benefits will be provided whilst employees await their employer’s response to their request. New criteria will also be brought in, determining when job adaptations would place an undue burden on employers, including grounds that are valid for rejecting requests.
There is no agreed implementation date confirmed yet.
Proposed changes
Maternity and parental leave
Currently leave entitlement is set at 16 weeks, but a proposed reform is expected to increase this to 20 weeks.
There is no agreed implementation date confirmed yet.
Unfair dismissal compensation
Following the European Committee of Social Rights identifying that Spain’s legislation around compensation for unfair dismissal is not in line with the European Social Charter, changes may be expected. Compensation does not currently provide sufficient coverage for damages caused to an employee, so a review may be planned for 2025.
There is no agreed implementation date confirmed yet.
Trainee statute
Expected to be picked back up this year are draft plans to introduce a Trainee Statute, regulating working conditions for trainees. The initial proposal was rejected by employers in 2024, but the Ministry of Labor and Social Economy is likely to want to progress this further in 2025.
There is no agreed implementation date confirmed yet.
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