16 January 2025
Work legislation changes in Spain in 2025
In 2025 Spain, legislation changes are poised to reshape employment conditions for local and international professionals. These shifts are particularly relevant for expats who aim to build a career in Spain and businesses outside the country seeking to hire Spanish employees.
This guide highlights the primary Spain employment law updates 2025, including changes to minimum wage, tax regulations, leave policies, payroll compliance, worker rights, and remote work. We’ll also explore how an Employer of Record (EOR) can help companies and individuals adjust to these new rules—whether you’re an expat settling into Spain or a foreign enterprise expanding your staff here.
Key legislative changes in 2025
Below are the most notable updates to Spanish employee rights for 2025, based on official announcements and guidance from Spanish authorities. Some areas of the country’s labour laws will stay the same, but the reforms outlined here could significantly impact both expats and non-Spanish employers.
Minimum wage adjustments
Spain’s Salario Mínimo Interprofesional (SMI) typically undergoes annual or biennial reviews. By 2025, the government intends to align the minimum wage more closely with the country’s average salary growth, aiming to support low-income workers and meet cost-of-living pressures.
The government plans a 5% increase in the minimum wage for 2025, pushing it to 60% of Spain’s average wage. In real terms, that’s about €56 more each month, reaching roughly €1,190. For those paid 12 times per year, the monthly figure would be €1,388.33.
Although the SMI is set nationwide, discussions about its adequacy often revolve around the steep living expenses in urban centers like Madrid and Barcelona. Many experts point out that while the baseline figure remains the same throughout Spain, city dwellers face higher rent, transportation, and food costs, making that wages much tighter.
As a result, policymakers and worker representatives sometimes push for regional adjustments or allowances, arguing that any effective minimum wage should consider these local realities.
Tax regulations and updates
Spain’s progressive tax system currently sets IRPF (Impuesto sobre la Renta de las Personas Físicas) rates starting at 19% for incomes below €12,450 and climbing to 47% for earnings beyond €300,000, although certain autonomous communities may add surcharges or offer allowances that modify those figures.
By 2025, the Ministry of Finance (Ministerio de Hacienda) could recalibrate these brackets or introduce new business incentives, affecting both personal and corporate tax obligations for companies operating in Spain.
In regions like Catalonia or the Basque Country, added surcharges can push an individual’s final tax bill above the baseline rates, highlighting how crucial it is to track local regulations set by each autonomous government.
Leave policies
In recent years, paternity and maternity leave in Spain have been moving closer in length, reflecting a national goal of achieving greater gender equality at home and in the workplace. In 2024, both maternity and paternity leave are 16 weeks, but the proposal is to increase this to 20 weeks.
By 2025, official sources such as Seguridad Social y Migraciones suggest these benefits could be refined further—potentially adding an extra week or two of paternal leave, matching or nearly matching maternity leave durations.
The government may also tie prestaciones por hijos a cargo (child benefits) and other subsidies more closely to average wage growth, according to discussions within the Seguridad Social. This update would offer new parents additional financial support during the critical early months, reinforcing Spain’s commitment to work-life balance and alleviating some of the burdens associated with childcare.
Payroll adjustments
Spanish labour authorities continue to streamline nómina (payroll) reporting. From 2025 onward, companies might need to include added details—such as flexible working hours or remote status—when submitting monthly social security contributions.
- Compliance checks: The government has signaled stricter audits on whether payroll records match actual hours worked and social contributions paid.
- Digital payslips: Many employers are expected to switch to fully digital payslips, complying with data protection laws (LOPDGDD) and new transparency rules.
Employee misclassification and worker rights
In the wake of ongoing discussions around “riders law” and the gig economy, Spain reinforces guidelines that differentiate employees from self-employed contractors (autónomos).
Spain classifies self-employed workers under the category of autónomos, requiring them to register with the Régimen Especial de Trabajadores Autónomos (RETA) and pay monthly social security contributions to access healthcare, retirement, and other benefits. According to Seguridad Social, autónomos have the flexibility to select their contribution base, although recent reforms encourage basing it on actual income.
Meanwhile, Agencia Tributaria regulations mandate that these self-employed workers declare earnings and pay taxes through quarterly declaraciones trimestrales. In light of the “riders law” discussions, the government’s new guidelines clarify whether gig workers should remain autónomos or qualify as employees, as misclassification can lead to back payments for social security and potential sanctions.
By 2025, the government may refine existing rules, potentially imposing tougher penalties for businesses that mislabel staff to avoid paying social security or providing benefits.
- Regulatory spotlight: Delivery and rideshare platforms face continued scrutiny under the “Ley Rider,” but other industries reliant on freelance structures could also be affected.
- Consequences: Fines and mandatory back payments for social security could escalate if misclassification is discovered.
Remote and hybrid work provisions
Spain’s Ley de Teletrabajo has already set standards for remote work, focusing on cost reimbursement for equipment and electricity. By 2025, additional clarifications may emerge, detailing how overtime, communication downtime (the right to disconnect), and safe working conditions apply to home-based employees.
- Right to disconnect: Current legislation protects an employee’s off-hours, and further refinements might limit after-hours messages or calls for remote staff.
- Ergonomic standards: Employers could be required to ensure adequate seating, lighting, and tech equipment, with possible government inspections or compliance checks.
Implications for employees and expats relocating to Spain
For employees and expats relocating to the Spain
For newcomers seeking employment in Spain, the strengthened wage floor and improved parental leave could make local contracts more attractive. On the other hand, revised tax brackets might influence net pay, so understanding your Impuesto sobre la Renta de las Personas Físicas (IRPF) obligations is crucial.
Additionally, high-skilled professionals moving to Spain may benefit from the Beckham Law, a special tax regime that can significantly reduce their tax burden during their first years there.
If you come as a freelancer or under a gig model, the government’s enhanced employee protections may force you to ensure your work arrangement is entirely legal. Otherwise, you risk complications with contract validity or social security coverage.
Implications for non-Spanish employers
Companies outside Spain aiming to hire Spanish workers must adapt quickly to new wage mandates, adjust payroll software for revised taxes, and ensure their classification of employees versus freelancers aligns with updated national guidelines. Noncompliance can lead to fines, extra social security payments, and reputational damage.
Additionally, if your business leverages remote positions, confirm that your operational model adheres to remote work provisions related to equipment reimbursements and the employee’s right to disconnect.
Employer of Record (EOR) services as a solution in Spain
With the sweeping Spain work legislation changes in 2025, staying compliant can feel daunting for businesses and individuals alike. This is where an Employer of Record (EOR) in Spain comes into play, providing tailored support to help you adapt smoothly to new legal requirements.
For companies
- Payroll management: An EOR oversees calculations for Spanish social security contributions and any new tax thresholds introduced in 2025.
- Legal compliance: By tracking updated laws around worker misclassification, leave entitlements, and remote work policies, an EOR ensures you avoid penalties.
- Employee onboarding: From drafting contracts that meet Spanish labor standards to addressing location-specific regulations, the EOR streamlines your hiring and onboarding processes.
For employees and expats relocating to Spain
- Simplified relocation process: An EOR manages complex administrative tasks, including work permits, immigration compliance, and Spain-compliant employment contracts.
- Accurate tax and benefit management: By handling the correct deductions for Impuesto sobre la Renta de las Personas Físicas (IRPF) and social security, an EOR helps expats avoid errors or unexpected liabilities.
- Focus on career and community: With these administrative details in expert hands, you can devote your energy to settling into Spain, integrating professionally, and enjoying the country’s cultural richness.
- Comprehensive support for smoother transitions: From clarifying healthcare coverage to navigating Spain’s employment landscape, an EOR acts as a reliable guide through every stage of your relocation journey.
Such services lift the burden of complex regulations, allowing you to recruit talented individuals in Spain—or begin your new role—without wrestling with daily administrative challenges.
Looking ahead: preparing for 2025
From a rising Salario Mínimo Interprofesional to clarified contractor rules, the Spain employment law updates 2025 underscore the importance of keeping your HR practices current. Expats can benefit from newly improved benefits and job opportunities, while foreign companies need to remain vigilant about payroll and classification guidelines.
An Employer of Record in Spain proves invaluable for mitigating risks and administrative burdens, ensuring all updates—from tax changes to parental leave expansions—are properly addressed. Get in touch if you have questions about Spain work legislation changes 2025 or need support meeting the latest requirements. Consider how EOR services can simplify your path forward. By proactively adapting to upcoming reforms, you’ll be better placed to thrive in an evolving Spanish employment landscape.
The information in this article is for general use only and should not replace professional legal advice. For specific guidance on Spanish employment law, consult a qualified expert or check official government resources.