The Spanish cabinet has approved a decree to reduce the legal working week from 40 to 37.5 hours without salary reduction, aiming for implementation by the end of 2025. The change marks a significant development in the country's labor laws.
The measure, which will affect approximately 12M workers — primarily in retail, hospitality, and agriculture sectors — was approved after more than a year of negotiations and represents a key component of the 2023 agreement between the Socialists and the far-left party Sumar.
Labor Minister Yolanda Diaz championed the reform as a means to modernize Spain and enhance productivity in an economy that demonstrated robust growth of 3.2% last year, outperforming other European nations.
The reduction in working hours represents a historic advancement for workers' rights and economic efficiency. The measure will modernize Spain's workforce while maintaining salaries, improving work-life balance, and boosting productivity. This progressive reform aligns with modern workplace management principles and positions Spain as a leader in labor reform.
The mandatory reduction in working hours will increase business costs, reduce competitiveness, and potentially harm economic growth. The timing is particularly concerning given rising unemployment and market fragility, while the one-size-fits-all approach ignores the diverse needs of different sectors and company sizes.