Spain advanced a reform package this Tuesday, aimed at reshaping immigration rules and labor-market access. The changes are designed to make it easier for thousands of migrants to work legally, while introducing a new contribution system for self-employed workers. The proposal, backed by the Minister for Inclusion and Social Security, Jose Luis Escrivá, and the government, will enter into force in 2023, pending legislative steps. One major measure could take effect automatically once published in the Official State Gazette (BOE), while another requires congressional approval to secure a parliamentary majority.
Regulatory changes drafted under Escrivá expand job opportunities for foreign-born residents in Spain. Official Social Security data show that about 2.3 million active workers were born outside Spain as of June. A notable feature of the reform is the ability for individuals to obtain a work permit through a training program. In practice, education can be paired with an employment contract, allowing the permit to accompany the learner throughout their studies. Data presented by Escrivá at a cabinet briefing reveal that under the current system, student visas did not grant work rights, and roughly 50,000 migrants are pursuing studies on Spanish soil.
The reform emphasizes a pathway from training to employment. In other words, those without a residence permit who have resided in Spain for two years will gain access to education, which in turn opens the door to a work permit and participation in the labor market. The approach also revises how social qualifications are assessed: the work contract presented to request a permit will be judged by the applicant’s qualifications and alignment with the minimum interprofessional salary (SMI), rather than simply by contract duration. If an applicant can show dependents, the required period may be reduced from the standard 20 hours.
Another element of the reform is the creation of a catalog of occupations with difficult coverage for each province or border region. The catalog will be informed by data from EPISODE and will require approval from employers’ organizations and unions. Once a shortage profession is identified, employers will be able to bring in workers from outside the country to fill the gap.
BOE pending
The aim is to modernize the migration model to promote orderly and safe movement of people. The government notes that this is not about tax collection, but about balancing Social Security income and expenditures while maintaining overall stability. Some centers voice concerns that the reform could widen flexibility for companies, potentially attracting workers from abroad instead of improving local conditions. Critics warn about possible displacement effects, such as workers moving within sectors just to access permits, and note anecdotes about staff from abroad being attracted by higher wages in different markets. The discussion emphasizes whether reforms will truly attract unemployed residents on Spanish soil to stay and work long-term.
What happens if a student’s employment contract isn’t renewed? Union sources suggest that BOE pressure could be decisive. If a company decides to refresh the workforce, workers may be able to continue operating under the permit without immediate renewal. The reform also clarifies which jobs qualify for work authorization. Sources indicate that degrees from universities, master’s programs, vocational training, continuing education, and comparable courses offered by public employment services will align with the new rules, including regional bodies such as SOC in Catalonia.
80% of self-employed youth will pay less
The cabinet is also expected to approve a special regime for the self-employed that would overhaul the social-contribution schedule starting in 2023. Previously, self-employed workers could choose their own wage level, with the majority selecting the minimum wage (about 294 euros). Beginning next year, contributions will be based on net income minus deductible expenses, rather than on a fixed wage.
The reform introduces 15 income brackets with 15 corresponding payment steps, ranging from a minimum of 230 euros to a maximum of 500 euros in 2023. While the plan remains progressive in that those earning less contribute more proportionally than a flat rate, it ensures a lower burden than the current structure as long as the minimum wage is satisfied. Social Security estimates that roughly 1.5 million self-employed people will pay less, with about half a million paying a wage near the current minimum and the remaining group facing higher contributions. The change is expected to deliver substantial relief for young self-employed individuals, as nearly 80 percent of those under 30 currently earn below the minimum wage and will see lower quotas under the new system.
Self-employed workers will be able to adjust their quota up to six times a year in response to business shifts, with adjustments accessible through the mobile app. This flexibility is designed to help small businesses and freelancers manage variability in income more effectively.
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