The first pilot project in Spain to test a four day work week is now underway. The Ministry of Industry, led by Reyes Maroto, published the order opening the competition to enable small and medium enterprises in the industrial sector and consulting firms specializing in this area to apply for support of up to 200,000 euros if they adopt the new work arrangement for a two year period. These steps are essential to test how this approach could work in real business settings.
Which companies can participate?
Participation is open to private sector companies operating in the industrial field that are classified as SMEs. A typical SME in this pilot is defined as a company with no more than 250 employees and annual turnover not exceeding 50 million euros, in line with European rules. Another requirement is that the company must have at least three years of activity and be up to date with tax payments.
The pilot covers specific activity sectors eligible for participation. Details are provided in the official documentation for those who need to review the precise scope.
How long will employees work less?
The ministry instruction sets a minimum of 10 percent reduction in weekly working days for employees. The reduction is to be applied on a weekly basis, and there is no plan to consolidate by simply shortening the year or increasing days off later. In practical terms, a standard 40 hour work week would see at least forty minus six hours, equating to 34 hours, while the reduction duration lasts at least two years from the moment the company begins receiving public support.
How many days off per week can a worker take?
The framework does not mandate whether the reduced hours should be concentrated in a single day or spread across several days. Each company, in agreement with its workers representatives, should design its own model within the legal framework.
Will the company be able to reduce salaries?
Salary reductions are not allowed as part of the pilot. The rules require that the ordinary wage for the reduced hours remains consistent with the employee’s normal pay. In other words, workers will still receive their full wage for the hours they are contractually entitled to, despite working fewer hours. This approach sets the pilot apart from other private sector experiments where hours and pay are reduced together. Notable examples in the private sector have included companies that cut both hours and salaries.
Employees will work fewer hours but keep the same pay. This distinguishes the pilot from other initiatives where pay reductions accompany shorter hours. Examples from other firms illustrate the difference in practice.
Will all workers be included in every company?
No. Companies that meet the requirements may choose not to apply reductions to the entire workforce. This might be due to job-specific constraints or management decisions about which roles best fit the new model. Implementation requires agreement with the workers council, and participants must hold full-time indefinite contracts.
There is a minimum participation threshold to qualify for public aid. For firms with 20 or fewer employees, at least one worker must join the pilot, representing 30 percent of the workforce. For firms with 21 to 249 staff, at least 25 percent must participate. All workers are counted for the calculation, including those with non-full-time contracts, even if only full-time workers are measured for eligibility.
Additionally, the ministry requires a minimum gender representation in the pilot. For example, a company with 100 employees should ensure that if 10 people participate, at least five are women.
What kind of assistance will participating companies receive?
The Ministry of Industry will provide up to 200,000 euros to each eligible company until the total budget of 10 million euros for the pilot is exhausted. Eligible expenses include the proportional portion of salary paid to employees who continue to work less, corresponding to the hours reduced. For example, if a company reduces a worker by four hours per week, it can request funding to cover the corresponding salary cost for those four hours. The program caps salary-related funding at 150,000 euros per company.
Additionally, companies must contract a consulting firm to help develop productivity and reorganize working hours so the reduction is sustainable. This consulting cost can be claimed up to the same overall grant cap of 200,000 euros until the program’s budget is depleted.
How will the government decide who receives aid?
Applications are administered by the EOI Foundation under the Ministry of Industry. Submissions are evaluated by a commission, and subsidies are awarded competitively to the highest scoring applicants until the budget runs out. Poor scores risk exclusion from funding.
Evaluations focus on economic viability, the credibility of the proposed hour reductions, the extent of the productivity gains, and the detailed plan for implementing the pilot. Other factors may be considered to determine the ultimate allocation of funds.
How does the program assess productivity improvement?
While the Ministry tracks productivity improvements, it does not prescribe a single measurement model. Each participating institution will establish its own indicators and schedule periodic evaluations to demonstrate progress and outcomes. The aim is to capture tangible improvements in productivity tied to the new working arrangement.
When can applications be made?
The call for proposals has not yet set a firm submission date. The Ministry of Industry has published its rationale in the Official State Gazette, and more details will follow as the process develops.