Employment Law Updates for 2026: Spain
Spain is entering 2026 with a new series of labour and social security reforms designed to make the labour market fairer, clearer, and more future-proof. The new measures aim to strengthen the pension system, increase transparency, and improve employee protection. Some changes will take effect in January 2026, while others will follow later in the year, pending final approval by the legislature.
In this blog, we explore the key aspects of these developments and what they mean for employers in everyday practice. We, as Parakar, can support your organization in dealing with these changes, complying with regulations, and translating new requirements into manageable, day-to-day processes.
A new approach to pension calculations
From January 1, 2026, Spain will modernize the way state pensions are calculated, a change that international employers need to take into account when managing their long-term workforce planning. The reference period will be extended to 348 continuous months, with only the 324 months with the highest contribution payments being counted. This will effectively spread pension calculations over nearly 29 years, while periods of lower income can still be excluded. In addition, new mechanisms will partially close the contribution gap, supporting efforts to reduce gender-related pension disparities. For HR and payroll teams, accurate contribution data and data consistency will be essential under the revised system.
Higher social security contributions on the horizon
Social security contributions will increase from January 2026, which will have a direct impact on labour costs in Spain. The intergenerational equity mechanism (MEI) will rise to 0.90%, with employers bearing the brunt of the increase. At the same time, solidarity contributions on higher incomes will increase across all income groups. International employers should review their payroll and budget assumptions early to guarantee compliance and avoid unexpected cost increases.
Clearer rules for interns and trainees
A draft law is expected in 2026 that will introduce a clearer legal framework for scholarship holders and interns, an area that often raises questions for multinational organizations. The proposals include minimum standards for structured training plans, the ratio of supervisors to interns, rest periods, access to workplace facilities, and compensation for internship-related expenses. Once this law comes into force, HR teams will need to reassess internship and trainee programs to ensure they comply with the new requirements and remain in line with Spanish legislation.
Sustainable mobility becomes a priority in the workplace
The upcoming law on sustainable mobility will impose new obligations on larger employers operating in Spain. Organizations with more than 200 employees, or 100 employees per shift, will be required to implement workplace mobility plans within 24 months of the law coming into force. These plans must be negotiated with employee representatives, formally registered, and reviewed every two years. For international employers, an early assessment of headcount, commuting patterns, and employee representation structures is essential for smooth implementation.
Longer maternity and parental leave
The right to leave for family reasons is also being extended in Spain. Maternity and parental leave will be extended by three weeks, with single parents entitled to a total of 32 weeks. Although the legal framework will come into force in July 2025, the additional weeks can be requested from January 1, 2026, for eligible events occurring after August 2024. Employers must ensure that their personnel policies, payroll administration, and absence management procedures are adapted to the extended rights.
Preparing for EU rules on pay transparency
By June 2026, Spain must transpose the EU Pay Transparency Directive into national law, which will entail new compliance obligations for employers. The directive requires greater transparency around pay structures, including salary information for employees and job applicants. Although the draft legislation has not yet been published, international employers should begin reviewing their compensation frameworks, data availability, and internal reporting processes to prepare for stricter disclosure requirements.
How Parakar can support
Navigating Spain’s changing employment landscape can be complex, especially for international employers managing cross-border teams. Parakar supports organizations at every stage of the recruitment and employment process in Spain, ensuring compliance while keeping HR processes practical and efficient.
We help you hire staff in Spain quickly and in compliance with the rules, even without setting up a local entity, by managing employment contracts, payroll, and social security obligations in line with Spanish labour law and collective bargaining agreements. For companies with remote employees, Parakar provides ongoing HR support, including onboarding, payroll, and compliance across all regions.
In addition, we offer full outsourcing of HR administration, managing legally required leave entitlements, contribution obligations, and payroll processes as legislation evolves. Our team also supports employee relations, including collective bargaining agreements and HR matters, so you can comply with legislation while maintaining positive workplace relationships.
Contact our consultants to discover how Parakar can help your organization stay ahead of changes in Spanish labour law.
