11th February 2025
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Spain moves closer to reducing the work week by 2.5 hours

On Tuesday, the Spanish Cabinet approved a plan to reduce the standard work week for millions of employees by 2.5 hours, bringing it down to 37.5 hours. However, while the decision is seen as a positive step, it still requires approval from parliament before it can take effect.

Spain’s minority coalition government between the socialist (PSOE) party and left-wing Sumar group is pushing for the change in one of the fastest-growing economies in the developed world. Yet, the proposal is expected to face significant challenges in parliament, as well as resistance from business leaders who argue it could hinder economic growth.

As part of their 2023 coalition agreement with Sumar, the ruling PSOE led by Prime Minister Pedro Sánchez pledged to cut the full-time contractual work week from 40 hours to 37.5 hours without reducing salaries. The government aims to implement this change by the end of 2025.

This long-debated reform, which took over a year of negotiations, would impact approximately 12 million workers, particularly those in sectors such as retail, hospitality and agriculture. However, public-sector employees and workers in many large companies already operate under a 37.5 hour work week.

Labour Minister Yolanda Díaz (main image) stressed that the measure would ‘modernise Spain’ and enhance productivity – a long-standing weakness in an economy that grew by 3.2% last year, outperforming many European counterparts. She stated that the goal is to ‘work efficiently’ while also giving workers a renewed sense of optimism.

Díaz’s remarks came during a press conference following the cabinet meeting. The agreement builds on a deal reached last year with Spain’s two major trade unions (CCOO and UGT). However, business associations walked away from negotiations after 11 months, expressing concerns over the potential economic impact.

With unemployment rising slightly in January, employers worry that Spain’s labour market is showing signs of vulnerability, and they fear that the reform could negatively affect certain industries.

Additionally, the government still faces the challenge of securing enough parliamentary support to pass the measure. This could be particularly difficult given the hesitance of the key pro-business and pro-independence party from Catalonia, Junts per Catalunya (JxCat).

For now, the shorter work week is not yet in effect. It will only become official once it is published in Spain’s Official State Bulletin (BOE).

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