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New Spanish Government – Changes Expected for 2020

Posted in: Information Topic, News Articles,
Author: Richelle de Wit
Tags: ,

Lots of changes proposed in the 50 page Government Programme that accompanied the declaration re a coalition government formed by the PSOE and Unidas Podemos, signed on one of the last days of 2019.

Minimum Wage

Proposal to be upgraded to 60% of the average wage in Spain. Until a Royal Decree is approved and published, the 2019 Minimum Wage will remain in force.

Update 23rd of January – parties have come to an agreement, Minimum Wage for 2020 will be 950 euros/month, 14 payments. Still needs to ratified by Council of Ministers. More info HERE.

Pensions

Proposal to increase acquisition power for those receiving non-contributive pensions and to delay the application of the sustainability factor till 2023.

Update: pension increase of 0,9% as per 1.1.2020 confirmed by law. More info HERE.

Workers Statute

Proposal for a reform, better protection for workers. Several things introduced in the great Labour Reform in 2012 will be revoked, like the possibility for employers to fire employees for being sick under certain circumstances and to change working conditions unilaterally.

Update 23rd of January 2020, the government has prepared legislation to annul the article in the Statute for Employees that allowed employers to fire employees for being absent from work for medical reasons. Still needs to be ratified by Council of Ministers.

Social Security

Proposal for a reform of their organisation, better functioning with less costs. Also, plans to increase the IPREM index that is a relevant tool to determine eligibility for many benefits and subsidies.

Autonomos

Fingers crossed that 2020 will finally see an income-related contribution system for Autonomos. It is included in the plans, no indication on when exactly this will be discussed further.

Higher income taxes for higher incomes

As of 130.000 personal income, as of 140.000 income from capital. But changes are foreseen for businesses as well. Higher taxes for those with higher turnovers, lower for those with invoiced income under 1.000.000 euros.

 

The above is only a very limited summary of the proposed changes, we will inform our members when more facts become available in the course of 2020.

Please note: The information provided is based upon our understanding of current legislation. It is not legal advice but is provided freely to enable you to be properly informed. We recommend that if you are considering taking action, you should seek professional advice.

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