Spain’s government is trying to push through legislation that would reduce the normal workweek from 40 to 37.5 hours with no reduction in pay. The measure was first proposed in tripartite consultations at the end of 2024 but was rejected by business leadership. In response, and with union support, the government is pushing for Parliament to pass legislation that would implement the change this year. Also, the government has increased the statutory minimum wage (Salario Mínimo Interprofesional – SMI) by 4.4% for 2025. Separate regulations, which have already taken effect, modify the partial retirement system and increase social security contributions.
The government is arguing for the reduction in the normal workweek to enhance work/life balance; however, the measure faces strong opposition in Parliament where the government is in the minority. Few of the companies surveyed by WTW in Spain observe a 37.5-hour workweek (7% in offices, 11% in plants and 10% of retail shops), so imposing a shorter workweek all at once could significantly increase labor costs.