Spanish Ministers Approve 37.5-Hour Workweek Without Salary Reduction, Facing Employer Opposition
On Tuesday, Spanish ministers agreed to reduce the legal workweek to 37.5 hours while maintaining current salaries, pushing forward a key initiative of the coalition government despite resistance from business groups.
During its weekly meeting, the cabinet endorsed the reduction from the current 40-hour workweek through an executive decree introduced by Labour Minister Yolanda Díaz, leader of the hard-left party Sumar.
“This initiative is about improving quality of life, reducing working hours, and enhancing both productivity and economic efficiency,” Díaz told reporters.
The measure still requires parliamentary approval, where the centre-left government of Socialist Prime Minister Pedro Sánchez lacks a clear majority and must navigate the demands of smaller parties to secure passage.
Díaz, who also serves as deputy prime minister, made the workweek reduction a central condition for her party’s backing of Sánchez’s leadership, aiming for full implementation by the end of 2025.
However, the centre-right Catalan separatist party Junts has expressed reservations, while the leading employers’ association, CEOE, has warned that the measure could increase business costs and reduce competitiveness.
Months of negotiations between Díaz, unions, and employer representatives collapsed in November when CEOE insisted that workweek reductions should be handled through collective bargaining rather than imposed by law.
“The business sector supports dialogue, but not one-sided decisions,” CEOE president Antonio Garamendi said on Tuesday.
Díaz has also clashed with Economy Minister Carlos Cuerpo, whom she accused of aligning with employers after he suggested postponing the reform by a year to allow small businesses more time to adjust.
Spain’s central bank and a former economy minister have cautioned that rising labor costs could drive inflation and slow job creation.
Following the cabinet’s decision, Cuerpo noted that businesses may resist the change despite Spain’s strong economic growth, falling inflation, and the lowest unemployment rate in 16 years.
