A Valencia community program promotes a four-day week with wage subsidies
Valencia based companies looking to hire can explore a new plan that supports a 32 hour work week spread over four days. The initiative, announced by Labora in coordination with the Ministry of Economy, aims to streamline programs and encourage rational job scheduling across businesses.
The subsidies include up to 30,000 euros for each permanent contract created under the scheme. The goal is to assist vulnerable groups and provide a subsidy to unemployed individuals who participate in this organizational shift. The reduction in weekly hours must be agreed with union representation and cannot affect wages, ensuring employees do not lose pay as a result of the change.
Participants hired by companies, unemployed individuals registered with Labora, and primarily belonging to vulnerable groups may qualify for support, though initial indefinite contracts for workers outside these groups can also be subsidized. Hiring must arise from a voluntary move toward rationalized working hours within the employing organization.
In one illustrative case, subsidies can reach up to 30,240 euros for a qualifying citizen who is a woman who has experienced violence, or a person with significant functional diversity. Other scenarios include women at risk of social exclusion or long term unemployment reaching 28,728 euros, while men in similar risk situations or those over 50 or long term unemployed can receive up to 27,216 euros. If the hired worker does not fall into any of these categories, the subsidy amounts to 15,120 euros for women and 13,608 euros for men.
The program also covers applicants who meet the criteria for significant functional diversity and supports part time arrangements of at least 15 hours per week, with corresponding salary reductions aligned to the contracted hours. Applications are to be submitted electronically as described in the call for help, with a deadline set for October 31. [Source: Labora, Ministry of Economy]
In addition to the Valencia initiative, Alicante’s tech sector has shown interest in similar four day workweek models, with possibilities for broader adoption across industries in the region. The structure remains focused on preserving employee pay while reducing weekly hours, and requires a balanced impact on the workforce to qualify for subsidies.
To qualify for the subsidy, participating companies must demonstrate that the reduced work schedule will not severely disrupt operations. For smaller firms with up to 49 workers, up to 30 percent of the workforce may be affected by the reduced hours. For larger firms with 50 or more employees, the threshold is lowered to 20 percent. This framework helps ensure a manageable transition while supporting job stability and fair compensation. [Source: Labora, Ministry of Economy]