The newly formed Spanish government, led by the socialists and their Podemos partners, began its agenda with a focus on workplace reforms. Among the most talked-about measures is a proposal to shorten the standard working week. The plan suggests reducing the weekly hours from 40 to 37.5, a move that has stirred broad debate since its introduction a few weeks ago. Yolanda Díaz, who continues to head the Ministry of Labor, intends to present this reform to Congress without delay.
The proposed reduction represents a major shift in Spain’s work culture. Government officials argue that trimming the week to 37.5 hours will improve workers’ quality of life, boost productivity, and foster a healthier balance between professional duties and personal time.
The reform is designed to unfold gradually. Initially, the workweek would ease from 40 hours to 38.5 hours in 2024 and settle at 37.5 hours in 2025. This translates to an annual saving of about 150 hours for employees, dropping from the current 1,950 hours to approximately 1,800. The measure does not imply any reduction in employees’ salaries.
More than 12 million private sector workers who currently work 40 hours weekly are anticipated to benefit from the change.
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SMI increase
The reform also envisions an increase in the Minimum Interprofessional Wage (SMI) and adjustments to compensation in cases of unfair dismissal.
Minister Díaz underscored a commitment to raising the SMI and framed it as a legislative priority. “We will promptly engage social partners to keep moving the SMI upward,” she stated.
Under Pedro Sánchez’s administration, the SMI has surged by about 47% over the past five years, reaching 1,080 euros per month, up from around 736 euros during the tenure of a prior government. This progress, however, comes with expectations of careful negotiation and practical impact studies.
Yet the process of setting a new SMI is expected to be intricate. Unions urge a swift pace in talks, while some employers warn of potential negative effects on businesses. Current law positions the most representative unions and employer associations at the center of the annual decision on the SMI, taking into account economic factors such as inflation, productivity, and overall economic conditions.
According to a Ministry of Labor statement, “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 seasonal workers, aligned with the Consumer Price Index, considering changes in national productivity, the share of labor in national income, and the broader economic situation.”
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Santiago Niño Becerra on shortening the working day: “This is a mistake that will have consequences”
From a union perspective, UGT advocates raising the SMI to 1,200 euros to ease inflationary pressures on workers. They also push for stronger protections for workers, including higher compensation for unfair dismissals, proposing a minimum of six months’ pay regardless of seniority.
The union also seeks to restore key elements from the 2012 labor reform, such as increasing the compensable period for unfair dismissals to 45 days per year worked, up from the current 33 days.
Finally, the Minister of Labor stressed a commitment to ongoing dialogue and negotiation during her tenure. She acknowledged that consensus may sometimes be elusive, but social dialogue remains essential for crafting fair and effective policies.