2018 Spain labour reform: 9 new changes already scheduled in national budgets you should know

If you are an entrepreneur and you are looking for information about the 2018 Spanish labour reform, you should be interested in this. This is a summary of the new changes in the labour areas that have already been contemplated in the national budgets for the current year (published on July the 5th, 2018). Some of these legislative developments will be operating from the same day, 5 July 2018, while others will be set up from 1 August 2018.

1.Extension of the length of Paternity Leave period

There is a change in the article 48.7 of Workers’ Statute (Spanish Labour Law), in order to extend the length of the Paternity Leave period, both in the public and private sector, so the length was before of 4 weeks, and from the 5th of July 2018 it is of 5 weeks. This leave period could be taken in full-time or part-time modality, and the whole period must be taken continuously, except for the last week, that could be taken during the following nine months after the birth of the child/children, in agreement with the company formalized at the beginning of the leave period.

2.Benefit in social contributions because of alternative work for a threaten during pregnancy or breastfeeding period and temporary incapacity period

It is still in force the benefit in social contributions of 50% of company quote motivated because of alternative work for a threaten during pregnancy or breastfeeding period, and also during temporary incapacity period.

3.Financial support for young people with a low level of education

There is a new measure in order to incorporate young people who are beneficiaries of the program “Sistema de Garantía Juvenil “ to the employment market, which consists in financial support, of an amount of 80% of IPREM (Public Income Indicator for Multiple Effects) in effect at that time. This support is applied during the apprenticeship contract, and it will be valid for a maximum of 18 months.

4.Benefit in social contributions when an apprenticeship contract becomes indefinite

There is a new benefit in social contributions in company quote when an apprenticeship contract becomes indefinite, if they are concluded with the young people who are beneficiary of the financial support described in the previous paragraph, of an amount of 250 euros per month, and it will be valid for a maximum of 3 years.

5.Financial support for tourist industry companies

In order to reduce the temporary employment race in the tourist industry, the measures in order to support the extension of the length of the permanent seasonal contracts on this industry are still in force.

The company which begins or continues the permanent seasonal contracts with the employees could have a benefit in social contributions of an amount of 50% of company quotes.

6. General deductible amounts in Personal Income Tax (IRPF)

There is a change in Personal Income Tax (IRPF), so the minimum of the deductible amounts, which was before of 12.000 euros, is 14.000 euros per year from the 5th of July. There are also changes in the taxes for people who have an occupational income between 14.000 and 18.000 euros per year, and also for people who earn more than 18.000 euros per year.

The regularization of these changes could be done both in the same month and the following month after the 5th of July.

7.Deductible amounts because of maternity

Women with children of less than 3 years could increase the deductible amounts in their Personal Income Tax from 1.200 to 2.200 euros if they have paid amounts in order to take their children to kindergartens or schools authorized.

8.No changes in IPREM and legal interest rate in 2018

There will not be changes in IPREM (Public Income Indicator for Multiple Effects) and legal interest rate, so they will be 17,93 euros/a day and 3,00%, respectively.

9.Increase in regulatory bases of social contributions for self-employed workers from the 1st of August 2018 (Ap. 5, art. 130, PGE 2018)

These will be the regulatory bases for self-employed workers from the 1st of August 2018:

  • Maximum regulatory base: 3.803,70 euros per month. It is an increase of 52,50 euros, because the previous base was 3.751,20 euros.
  • Minimum regulatory base: 932,70 euros per month. It is an increase of 12,90 euros, because the previous base was 919,80 euros.


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