Changes expected for 2020 by Spanish Government

News via Citizens Advice Bureau Spain

Lots of changes ared proposed in the 50 page government programme that accompanied the declaration regarding the coalition government formed by the PSOE and Unidas Podemos, signed at the end 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.

**** Amounting to 21,62 euros/day or 648,60 euros/month, depending on whether the contract mentions daily or monthly salary.
Per year this would amount to 9.080,40 euros as all employees have the right to 2 times a 30 days extra payment per year, so 14 months salary effectively. If you are being offered 12 payments/year, the minimum wage should amount to 756,70 euros.

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, such as the possibility for employers to dismiss 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 todismiss 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 taxes for higher incomes

From €130.000 personal income and from €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, CAB will inform their members when more facts become available in the course of 2020.

LEAVE A REPLY