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Working Hours Reduction Simulator — 37.5 Hours
Estimate the economic impact of the new 37.5-hour maximum working week on your business: hours reduced, additional cost and the equivalent in new hires.
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Minimum 37.5h — if already ≤ 37.5h, no reduction applies
Include bonus payments and supplements
Estimated impact of the reduction
Your company already complies with the 37.5-hour working week. There is no additional impact from the new legislation.
Reduction per employee
Weekly hours being reduced
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Total annual hours reduced
Across all affected employees
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Hourly labour cost
Annual gross salary ÷ current annual hours
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Annual labour cost impact
If salaries are not reduced when hours fall
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Percentage increase in labour costs
Relative to the current total payroll
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Equivalent in new hires
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Number of full-time employees (37.5h) needed to cover the reduced hours
Adaptation options
Internal redistribution
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Additional hiring
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Digitalisation and automation
Review labour-intensive processes to automate repetitive tasks and offset the reduction without impacting productivity.
Methodology note: This simulator does not include employer Social Security contributions (approximately an additional 30–32% on top of the gross salary). The real impact may be up to 30% higher than shown. Consult our labour law team for a full analysis.
This calculator is for guidance only. Consult a professional for personalized analysis.
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The reduction to 37.5 hours in 2026
Legal framework: Working Hours Reduction Act
The reform of Article 34 of the Workers' Statute establishes that the maximum ordinary working week is 37.5 hours calculated on an annual basis. The Act entered into force in 2025 with a phased transitional period: companies with more than 50 employees were required to adapt their schedules before 1 January 2025, and SMEs had until 31 December 2025. In 2026 the rule is fully enforceable for all companies.
Transitional periods and exceptions
The Act provides for certain exceptions and adjustments: collective agreements may establish irregular distribution of working hours, provided that the annual average respects the 37.5-hour limit. Sectors with specific needs — healthcare, essential services, hospitality — can negotiate flexibility arrangements through collective bargaining. Under no circumstances may salaries be reduced as a result of the reduction in working hours.
Mandatory working hours register
Since the reform, the working hours register is not merely advisable but mandatory and enforceable by the Labour Inspectorate. Companies must implement a reliable recording system — digital or paper — that captures start time, finish time and rest breaks. Non-compliance can result in penalties ranging from €625 to €6,250 per infringement. BMC assists with implementing compliant time-tracking systems.
Real impact on Spanish businesses
According to sector studies, approximately 40% of employees currently on a 40-hour week will be directly affected by the reduction. The most impacted sectors are industry, distribution and labour-intensive services. However, many technology and professional services companies had already adopted schedules of 37.5 hours or fewer, so the actual impact is uneven across sectors.
To adapt your company to the new regulations in an orderly and efficient manner, see our Employment Law and Human Resources service.
Adapt your company to the new 37.5-hour working week
Our labour law advisors will analyse the specific impact on your workforce, review applicable collective agreements and design an adaptation plan that minimises cost and ensures full regulatory compliance.
Methodology and sources
Assumptions applied by this calculator
- Standard annual hours based on Art. 34 ET (40h/week = 1,826 h/year)
- The Spanish Workers Statute (Estatuto de los Trabajadores, Art. 34) sets maximum ordinary working time at 40 hours per week in annual average. For a full year (52 weeks minus 14 public holidays = 1,826 hours), the simulator uses this as the legal ceiling. Collective agreements (convenios colectivos) may set lower standard hours (e.g. 37.5 h/week = 1,802 h/year).
- Overtime cap: 80 hours per year (Art. 35 ET)
- Article 35 of the ET limits overtime to a maximum of 80 hours per calendar year. Hours worked above the ordinary annual limit count as overtime and must be compensated at least at the ordinary rate, or compensated with equivalent rest (at the employee's choice, unless the collective agreement specifies otherwise). Overtime above 80 hours per year is unlawful.
- Mandatory daily time recording from 12 May 2019 (RDL 8/2019)
- Royal Decree-Law 8/2019 requires all Spanish employers to record the exact start and end times of each employee's working day on a daily basis. Records must be retained for 4 years and made available to the Spanish Labour Inspectorate (ITSS) and to workers' legal representatives on request. Non-compliance is classified as a serious infringement under the LISOS.
- ITSS sanctions: €750–7,500 per infringement
- Failure to maintain the mandatory daily time recording system is a serious infringement (Art. 7.5 LISOS). The Spanish Labour Inspectorate may impose fines of between €750 (minimum for serious infringement) and €7,500 (maximum for serious infringement). Per-inspection rather than per-employee sanctions are typical, but the ITSS may sanction each site separately.
Official sources
- Real Decreto-ley 8/2019 — mandatory daily working time recording (BOE-A-2019-3481)
- Estatuto de los Trabajadores, Art. 34 — ordinary working time (BOE-A-2015-11430)
- Estatuto de los Trabajadores, Art. 35 — overtime rules (BOE-A-2015-11430)
- LISOS (RDL 5/2000), Art. 7.5 and Art. 40.1.b — sanctions for time-recording non-compliance
Last reviewed: 2026-06-30
Reviewed by: BMC Labour Law Team — Specialists in Spanish labour compliance, working time regulation and collective agreements
This calculator provides an estimate for informational purposes. It does not replace professional advice. Results may vary based on personal circumstances and regulatory changes. Consult an advisor for personalized planning.
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This tool provides a directional estimate. A specialist can analyse your specific situation in detail.