The agreement reached between the government and the main public sector unions provides for a total wage appreciation of 11% for public employees for the period 2025-2028, although the unions calculate that the actual cumulative increase could reach up to 11.5% due to the spillover effect caused by the various annual increases. As reported in the original media, the increase for 2026 will have a fixed component of 1.5%, to which an additional 0.5% can be added if inflation equals or exceeds the agreed base percentage. This benefits more than 3.5 million workers and affects the entire public sector: state, regional and local.
The Ministry of Public Duties, together with UGT, CSIF and later CCOO, signed the provisions of the “Framework Agreement for Improving Public Employment and Service to Citizens”. As stated in the media, the 1.5% increase in salaries applicable as of December 31, 2025 will apply from January 1, 2026. However, if the annual inflation rate at the end of the year is equal to or higher than this value, an additional 0.5% will be added, making a total of 2%. If activated in the first quarter of 2027, this variable tranche would be paid out retroactively from the beginning of 2026.
The year 2026 will be the only increase that combines a fixed part and a potentially variable part. For the remaining years of the agreed cycle, the increases are exclusively fixed: in 2025 an increase of 2.5% is expected and for the years 2027 and 2028 increases of 4.5% and 2%, respectively, according to the media. These salary improvements are part of the government’s strategy to improve working conditions in the public sector, in a context where the reform has received majority parliamentary support, with the exception of Vox, which voted against, and the abstention of Junts, as reported by the media.
The ratification of these increases came after the validation in December of the Royal Decree-Law, which regulates in detail the salary increase of personnel dependent on the public sector and ensures that the established increases can take effect retroactively from January 1 of the respective year, the media reported. This regulatory framework covers all areas of administration and ensures that the 2025 increase comes into force in December and covers arrears since the beginning of the year. The form and payment schedule for the coming years depends on the union negotiations of each administration and provides for several temporary distribution options until 2028 or a single payment in December 2025.
According to media reports, in addition to the salary changes, the Ministry of Public Functions has taken on additional obligations, such as negotiating the introduction of a 35-hour week in the General State Administration. UGT reported that the aim is for this measure to be applied between February and March, after the negotiation rounds planned for early 2026. In parallel, the executive branch committed to limiting telework for public personnel and placed this issue on the agenda of the General Negotiating Table of the General Administration of the State.
These advances are part of the outstanding actions under the Framework Agreement for a 21st Century Administration agreed in October 2022, the gradual implementation of which also includes the creation of a commission responsible for monitoring compliance with the objectives signed between the government and the UGT, CSIF and CCOO unions. According to information in the original media, the current agreement envisages improvements in the area of working conditions, such as the abolition of the replacement tariff – which facilitates the replacement and expansion of staff -, the simplification of selection procedures for new civil servants and the increase in the number of public service personnel.
According to media, a redesign of the job classification system was also agreed to adapt it to effective functions, experience and professional training. Internal promotion procedures are implemented through selective competitions and the introduction of open and permanent tenders to promote mobility and professional development in the public sector.
The text of the agreement also includes the review of residence and island allowances, the updating of service compensation and the reduction of pay differences between public employees. Other measures include strengthening citizen services, improvements to licensing and arbitration policies, greater protection of occupational health (including psychological care and anti-aggression measures), and updating the economic conditions for personnel working abroad.
Regarding retirement, the agreement includes the formulation of mechanisms to optimize this phase and strengthens the system of administrative mutualism that includes institutions such as Muface, Mugeju and Isfas, thereby improving the quality of care, according to media details. The bilateral commission formed between the ministry and the unions will monitor the implementation of each point raised, reflecting the joint efforts to modernize the public service, consolidate workers’ rights and ensure the stability of the workforce in the short and medium term.
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