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Working Hours Reduction Simulator: the 37.5-Hour Proposal
Estimate what the 37.5-hour working week (proposal, not approved) would mean for your business: hours reduced, additional cost and the equivalent in new hires.
The legal maximum in Spain is still 40 hours of effective work per week, averaged over the year (Article 34.1 of the Workers Statute). The reduction to 37.5 hours is a bill that has not been approved.
Enter your company details
Minimum 37.5h — if already ≤ 37.5h, no reduction applies
Include bonus payments and supplements
Estimated impact of the reduction
Your working week is already 37.5 hours or less. The proposed reduction would have no additional impact on your company.
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 proposal to cut the working week to 37.5 hours
Legal framework: the maximum is still 40 hours
Article 34.1 of the Workers' Statute sets the maximum ordinary working week at 40 hours of effective work, averaged over the year, and leaves the actual working time to what collective agreements or employment contracts provide. The reduction to 37.5 hours was a government proposal, submitted as a bill, that has not been approved: it is not in force and cannot be enforced. This simulator estimates what it would mean if it were approved.
What the proposal provided
The proposal kept the irregular distribution of working hours through collective agreements, with an annual average within the new 37.5-hour limit, and left flexibility arrangements for sectors with specific needs (healthcare, essential services, hospitality) to collective bargaining. It also provided that salaries could not be cut as a result of the reduction. None of this applies unless the proposal is approved.
Mandatory working hours register
Since RDL 8/2019 (Article 34.9 of the Workers' Statute), 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 is a serious infringement (Article 7.5 LISOS), fined €751 to €7,500. 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 would be directly affected if the reduction were approved. 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 confirm the working time that applies to your staff today under your collective agreement and model scenarios, see our Employment Law and Human Resources service.
Model the 37.5-hour scenario with us
Our labour law advisors will analyse the working time your workforce has today (legal maximum of 40 hours, Article 34.1 ET), the applicable collective agreements and what the reduction would cost if it were approved.
Methodology and sources
Assumptions applied by this calculator
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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).
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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.
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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.
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ITSS sanctions: €751 to €7,500 per infringement
Failure to maintain the mandatory daily time recording system is a serious infringement (Art. 7.5 LISOS). Under Art. 40.1 LISOS, in force since 31-12-2021, the Spanish Labour Inspectorate may impose fines of between €751 (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 updated: 2026-06-30
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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