Lorraine Williamson
Spain’s Council of Ministers has approved a sweeping package of measures that will shape public employment, local investment, and public-service funding over the next three years. At its core is a guaranteed salary boost for more than three million workers, ensuring Spain’s public sector pay rises remain aligned with inflation and economic growth at a time when households are still feeling the effects of rising living costs.
The move comes only days after the government secured a far-reaching agreement with unions, signalling a new phase of stability and long-term planning for the country’s civil service.
A long-term commitment to wages and working conditions
The government has locked in a 2.5% salary increase for 2025, fully consolidated and applied retroactively from January. Central government staff will receive the updated amount in this month’s payroll, while regional and local bodies will schedule their own back-payment timelines.
Looking ahead to 2026, the rise will be 1.5% from January, with a further 0.5% added if inflation reaches 1.5%. This means wages could rise up to 2% in 2026, reinforcing the agreement’s central promise: to maintain purchasing power across the public workforce.
Between 2025 and 2028, salaries will grow by 11%, accompanied by a broader modernisation plan covering recruitment, internal promotion, digital skills, and the professional reclassification of staff. The government says these reforms are essential to strengthen the welfare state after “seven years of cutbacks” in both staffing levels and job quality.
Catalonia regains control over national civil servant selection
One of the more politically sensitive announcements was the return of selection powers for national civil servants to the Generalitat of Catalonia. The change reinstates a competence the region previously held from 2007 to 2013 and responds to long-standing demands from Junts per Catalunya.
The Ministry for Digital Transformation and Civil Service argues that restoring regional management will help tackle deep staffing gaps—four in ten posts are currently vacant—and remove uncertainty for candidates who do not know where in Spain they may end up working. For rural municipalities in particular, national civil servants are essential, covering auditing, treasury, legal services and key administrative duties.
Surplus funds released for sustainable local investment
A significant budgetary shift will allow municipalities and autonomous communities to use their 2024 budget surpluses for sustainable investments between 2025 and 2027. Eligible projects include water supply, lighting, waste management, housing, social assistance and energy-efficiency upgrades—areas where many councils have struggled to advance due to tight fiscal rules.
The measure is expected to unlock hundreds of millions of euros that were previously restricted, giving local authorities greater flexibility to respond to climate, welfare and infrastructure challenges.
The government also extended the deadline for SMEs and the self-employed to adapt their electronic invoicing systems to the “Verifactu Regulation”, pushing compliance dates into 2027 to ease the administrative burden.
New hiring approved for Spain’s distance-learning university
UNED, Spain’s National University of Distance Education, will receive a significant staffing boost following approval of its new public employment offer. Ninety-five teaching and research posts, along with ninety-eight technical and administrative positions, will be created.
The government says this reinforces its commitment to equal access to higher education, especially for students in rural areas or those balancing study with work.
Revised budget targets and new Crown Prosecutor
The Council of Ministers has re-approved the 2026–2028 stability targets after the Lower House rejected them in November. These targets now return to Parliament for a fresh vote.
Meanwhile, the appointment of Teresa Peramato as Spain’s new Crown Prosecutor has taken another step forward. The General Council of the Judiciary has issued a unanimous favourable report, clearing the way for her appearance before the Justice Committee.
La Palma chosen as home of the National Centre for Volcanology
In a move of scientific and symbolic significance, the government has selected La Palma as the headquarters of the future National Centre for Volcanology. The island, marked by the 2021 Cumbre Vieja eruption, is the only Spanish territory with active volcanism and a long record of risk management.
The new centre aims to turn Spain into a global leader in volcanic research and preparedness. Both the State and the Canary Islands government will fund the institution on a 50/50 basis.
Commitment to disability rights reaffirmed
Marking the International Day of Persons with Disabilities, the government highlighted the recent reform of Article 49 of the Constitution—one of Spain’s most significant steps towards strengthening rights, autonomy and accessibility for people with disabilities. The spokesperson reaffirmed the Executive’s intention to continue modernising the legal framework in this field.
Why this matters
This latest package is more than a salary update: it signals a new phase of investment in public services, digital capability and regional autonomy. For workers, salaries will now grow at a pace not seen in over a decade. For local governments, the release of surplus funds offers long-awaited breathing room. And for Spain as a whole, the decisions reflect a renewed focus on long-term planning rather than short-term crisis management.
Source: