New Royal Decree introduces major labour and social security reforms

At a glance

• New protected sick leave categories have been introduced for certain menopause-related conditions and for women unable to work due to injuries resulting from gender-based violence.
• A new reduction in social security contributions also applies to employees aged 62 and over who are on sick leave.
• Enhanced protections have been introduced for employees caring for a child or other dependant with cancer or another serious illness, including broader eligibility, extended support in certain circumstances, and corresponding changes to working time reduction rights.
• A wider package of social security reforms strengthens support in areas including catastrophic events, survivor benefits, birth and childcare, terrorism-related pensions and compensation, and child maintenance.

On 21 October 2026, Spain published Royal Decree-law 31/2026, which introduces a broad package of reforms aimed at strengthening social security protections and expanding support for vulnerable individuals and families. Several of the changes are likely to be particularly relevant for employers and employees.

Among the most significant measures is the introduction of two new forms of protected temporary incapacity. The first applies to a specifically recognised condition linked to menopause that results in an employee being unable to work, while the second covers women whose injuries resulting from gender-based violence prevent them from working. In both cases, no minimum contribution period is required, and social security benefits are available from the day after the absence begins. The benefit amounts to 60% of the applicable regulatory base for the first 20 days, rising to 75% thereafter.

The decree-law also introduces a 75% reduction in employers' social security contributions for common contingencies during periods of temporary incapacity involving employees aged 62 and over.

The reforms further expand support for employees caring for a child or other dependant with cancer or another serious illness. Access to the relevant benefit is no longer dependent on hospitalisation, provided the treatment required is of a comparable intensity. In exceptional circumstances, entitlement may continue beyond the age of 26 where the individual receiving care has a recognised disability of at least 65% or is classified as having Grade III dependency. In addition, both parents may now claim the benefit, either simultaneously or on an alternating basis. The related provisions of the Workers' Statute concerning reductions in working time have been updated accordingly.

The decree-law also creates a permanent mechanism under which social security benefits linked to catastrophic events will be treated in the same way as those arising from workplace accidents. This may result in enhanced protection in relation to temporary incapacity, permanent incapacity, and survivor benefits for those affected by qualifying events.

A number of additional measures are designed to strengthen support for families and survivors. Unmarried couples with children will find it easier to qualify for widowhood pensions, as the previous requirement for formal registration has been removed, subject to certain transitional provisions. The legislation also increases orphanhood pensions where the death resulted from violence against women, introducing a guaranteed minimum amount equivalent to twice the statutory minimum wage.

As a Royal Decree-law, the measure must still be approved by Parliament.