Pensions, wages, transport and more: All of the social measures approved in Spain for 2025

A new royal decree has been green-lighted which sets the stage for subsidies and funding in Spain this year

In a turn-up for the books, the Spanish government has been forced to scrap its bumper list of social initiatives after the unpopular decree was roundly rejected by the Congress of Deputies last week. Instead, a revised document has just been approved which contains 29 measures that range from pension and salary increases to public transport subsidies, guarantees for landlords and aid for DANA flooding victims.

Here are the main changes coming in 2025:

Aid for those affected by the DANA

Additional funding for the Generalitat Valenciana and aid to municipalities, companies and people who have suffered the consequences of the historic flooding in October. This includes the repair of the damage caused in the Poyo ravine, for which 26 million euros are allocated, and the restoration of state roads in Valencia, with and investment of 78.5 million euros.

Aid for those affected by the La Palma volcano

Extension until June 30, 2025 of the measures aimed at the economic reconstruction of the island, in response to the effects of the Cumbre Vieja eruption.

Transport subsidies

Following a worrying blip at the start of the year, the Spanish government has reinstated its transport subsidies until June 20, although they’re expected to remain in place until the end of 2025.

This means that free travel passes for Cercanías, Rodalies and Media Distancia trains are back, alongside discounts on metro and bus services. Public transport will be completely free in the Canary and Balearic Islands, and cyclists throughout Spain will be able to enjoy a 50% discount on public bike rental schemes.

Paris Palace

The Paris Palace, a property located on Avenue Marceau in Paris, will be officially returned to the PNV (Partido Nacionalista Vasco – Basque Nationalist Party) as part of Spain's Democratic Memory policies.

These policies aim to acknowledge and rectify injustices from the Franco era, including the restitution of assets seized from political parties during the dictatorship.

Evictions

The suspension of the eviction procedure for vulnerable groups without alternative housing is guaranteed, provided that it is duly accredited.

Creation of a public system of guarantees and collateral for housing

With this measure, which was not included in the previous decree, the Ministry of Housing and Urban Agenda will establish a line of guarantees for landlords to cover possible non-payments in rent, with the aim of encouraging homeowners to rent their properties out long-term and avoiding conflicts between owners and tenants.

Minimum wage

The Minimum Interprofessional Wage (SMI) in Spain currently stands at 1,134 euros gross per month, but this is expected to be increased by as early as next month.

Electricity supply cuts

The government has guaranteed that vulnerable families and those at risk of social exclusion won’t have their electricity, gas or water connections cut off under any circumstances.

Electricity social bonus

Extension of aid to vulnerable consumers until December 31, 2025, based on discounts of between 25 and 40% on the price of the electricity bill, depending on the economic situation of each household.

Extension of the anti-takeover shield

The Spanish government has extended its anti-takeover protections until December 31, 2026, maintaining restrictions on certain foreign investments. This measure temporarily suspends the automatic liberalisation of some foreign direct investments made by residents of EU and EFTA countries (European Free Trade Association, including Switzerland, Norway, Iceland and Liechtenstein).

Under this regulation, Spain has the power to block the purchase of stakes of 10% or more in Spanish-listed companies or in unlisted companies where the investment exceeds 500 million euros. This rule is intended to protect strategic sectors and prevent hostile takeovers by foreign investors that could pose a risk to Spain’s economy or national security.

Pensions

Revaluation of contributory pensions and state pensions in accordance with the CPI (2.8%) in 2025.
Increase in minimum pensions by around 6%.
Increase in non-contributory pensions and the Minimum Vital Income (IMV) by 9%.
Increase in pensions for dependent spouses and widows with dependents by 9.1%.
Revaluation of the pensions of the Compulsory Old Age and Disability Insurance (SOVI) by 6%.
Increase in the maximum pension to 3,267.60 euros per month.

President Pedro Sánchez initially proposed 80 measures, but dozens of these have now been dropped. Here are some of the most notable omissions:

Taxes

Some of the provisions dropped include the increase from 1,500 to 2,500 of the limit on income from a second payer, which exempts people from filing an income tax return if their total income does not exceed 22,000 euros per year; or deductions for those who carry out energy efficiency improvements at home, among others.

A measure relating to electronic cigarettes is also dropped; in this case, the entry into force of a new tax on the vaping liquids has been delayed until 1 April.

Electric cars

The budget allocated to encourage the purchase of electric cars – between 4,500 and 7,000 euros, – fuel cells and charging points, as well as the 15% tax discount on the acquisition of these vehicles, have been left out.

Aid to electro-intensive companies

Subsidies aimed at companies that consume large amounts of electricity in their production processes have been scrapped after widespread criticism.

Aid for autonomous communities

Another measure that has been put on the backburner is the plan to distribute 9.6 billion euros among the different regional governments as part of the autonomous financing system to meet public expenses.

Image: Freepik

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