The Spanish government has given the green light to a plan that aims to shorten the standard working week from 40 hours to 37.5 hours by the end of 2025, without reducing salaries. This initiative, part of the coalition agreement between the ruling Socialist Party and the leftist Sumar party, seeks to enhance productivity and improve working conditions.

Labour Minister Yolanda Díaz emphasized that the reform would update Spain’s labor market, which is one of the largest within the European Union.

The change is set to affect around 12 million workers, especially in sectors like retail, hospitality, and agriculture, while most public sector workers and large corporations already function under a 37.5-hour week.

Spain’s largest trade unions have expressed their support for the proposal; however, business representatives stepped away from discussions after 11 months due to worries about possible economic disturbances.

Business leaders caution that the reform may add pressure to industries already encountering difficulties, particularly as unemployment rates experienced a slight increase in January.

The proposal must now gain approval from parliament, where it faces opposition from pro-business parties in Catalonia and the Basque Country.

The government will need to obtain backing from smaller political groups to facilitate the legislation's passage.

Spain's economy expanded by 3.2 percent in 2024, exceeding the growth of most European nations, yet there are ongoing concerns regarding the long-term effects of labor reforms on economic stability.