The new Spanish Government, led by PSOE and Podemos, started its journey by focusing on the implementation of new measures in the workplace. Among the most notable initiatives is the proposal. Reducing the weekly working day from 40 hours to 37.5 hoursIt’s a measure that has sparked extensive debate since it was introduced a few weeks ago. Yolanda Díaz, who continues to head the Department of Labor, plans to quickly submit this reform to Congress.
The proposal to reduce the working day represents a significant change in the country’s workplace. According to the government, this plan proposes to reduce the working day from 40 hours per week to 37.5 hours in order to improve the quality of life of employees, increase productivity and provide a better balance between work and leisure.
This change will be implemented gradually. Like this, The working day will increase from 40 hours to 38.5 hours in 2024, and will remain 37.5 hours in 2025This will mean a reduction of 150 hours per year for employees, increasing from the current 1,950 to 1,800. Despite this reduction, this does not mean a decrease in workers’ salaries.
It is estimated that more than 12 million private sector workers who currently work 40 hours a week will benefit from the change.
SMI increase
The law also foresees an increase. Minimum Interprofessional Wage (SMI) and changes to compensation for unfair dismissals.
Minister Díaz emphasized his commitment to increasing the SMI and identified this as a priority goal for the legislature. “We will immediately call on social actors to continue increasing the Minimum Interprofessional Wage.”he stated.
Under the management of Pedro Sánchez, SMI has experienced a significant increase of 47% in the last five years, reaching the following level: 1,080 Euros per monthCompared to 736 euros during Mariano Rajoy’s tenure.
However, the process of establishing the new SMI is expected to be complex. While unions are calling on the government to speed up negotiations, employers are warning about the possible negative impact of the wage increase on business. Current legislation stipulates that the establishment of SMI should be decided by the unions and business associations with the most representative power, taking into account various economic factors.
According to a statement on the Ministry of Labor’s website, “The Government, after consultation with the most representative trade union organizations and business associations, will determine annually the Minimum Interprofessional Wage for both permanent workers and temporary or temporary domestic workers, Consumer Price Index, taking into account the average national productivity achieved, the increase in the participation of labor in national income and the general economic situation”.
From a union perspective, UGT recommends increasing SMI to 1,200 eurosTo alleviate the economic pressure of inflation on workers. They also advocate for the law requiring high compensation for unfair dismissals, stipulating a minimum of six months’ compensation regardless of the employee’s seniority.
This union also aims to restore the pre-existing conditions of the 2012 labor reform. This will include compensation of 45 days per year worked in the event of unfair dismissal. Currently these days are set to 33.
Finally, Minister of Labor Yolanda Díaz emphasized her commitment to dialogue and negotiation throughout her term. She recognizes that, although consensus may not always be achieved, social dialogue is vital to creating fair and effective policies.