The government is set to approve Tuesday a package of reforms to immigration regulations and self-employment contributions, aiming to expand access to Spain’s labor market for thousands of migrants. The cabinet also plans to greenlight a new self-employed contribution system negotiated with employers and unions, confirmed by sources in the Ministry of Inclusion and Social Security. The plan would allow two major reforms to proceed, one that will take effect automatically as soon as it is published in the Official State Gazette (BOE) and another that requires congressional approval, where a parliamentary majority will be required.
The regulatory reform championed by Escrivá seeks to broaden employment opportunities for foreign-born residents in Spain. Latest Social Security figures from June show 2.3 million active workers born outside the country. A key feature of the new text is that anyone who completes a training program would automatically receive a work permit. In practice, education could be paired with an employment contract and continued for the duration of the training. Previously, student visas did not grant work rights.
Another change under the reform is the creation of a “catalogue of professions with difficult coverage” for each region, based on data submitted and approved by employers and trade unions. When an unemployed occupation is identified, it would open the door for companies to recruit workers from outside the country.
“The priority has been, and remains, to create jobs for Spaniards and for our youth, while recognizing that certain labor market bottlenecks can be addressed through other means,” Escrivá stated at a June breakfast briefing. Some centers fear a flexibility that would allow firms to hire staff from abroad rather than improving conditions for the unemployed in Spain. A comparison was drawn with the United Kingdom, where Spanish nurses have moved abroad to secure better salaries, highlighting that similar dynamics could emerge here, including in the hospitality sector.
BOE pending
Questions remain about what happens if a student employment contract is not renewed. Union sources indicate that the current amount the BOE has been able to press will be decisive. If a company renews the worker, the permit can continue to be valid—without ongoing mandatory employment if a renewal is refused. The reform also needs to specify which types of work will confer the right to a work permit. Sources indicate that university degrees, master’s degrees, vocational training, continuing education, and comparable courses recognized by public employment services (such as Catalonia’s SOC) will qualify under the new rules.
The other major reform awaiting approval is the special regime for the self-employed, referred to as CHALLENGE. The final document emerged after more than six months of negotiation with employers and unions and builds on the 2023 Contribution plan. Previously, self-employed workers could choose their wage level, and about 85% paid the minimum wage. Starting in January of the coming year, contributions will be calculated on net income after deductibles.
The reform introduces 15 income brackets, with payments ranging from 230 euros to 500 euros in 2023 levels. The system is designed to be progressive in terms of the burden, though critics note that those earning less will shoulder a relatively larger share in proportion. Projections from Social Security indicate that approximately 1.5 million self-employed people will pay less, about half a million will pay roughly the current minimum wage, and the remaining earners will contribute more depending on income.