The year 2025 has come to an end and brings joy to Spanish civil servants. After weeks of negotiations between the Ministry of Civil Service and the majority unions and after its adoption by the Council of Ministers, on December 11th Congress gave the green light to a New salary increase for civil servants. An agreement that not only had an immediate impact in this year that is coming to an end, but also sets the path for public sector employees’ payrolls for the years to come.
The confirmation of the royal decree found broad support in the House of Commons: 309 yes votesthe rejection of Vox and the abstention of Junts. Even the People’s Party, the leading opposition party, agreed to this measure, which affects around 3.5 million public sector workers nationwide. From now on, the text will continue to be processed as a draft law, although the next steps have already been determined.
The approved agreement a 2.5% increase by 2025retroactively from January 1st of this year, and an additional increase in the 1.5% set for 2026which is applied to payslips that have already been updated. In addition, a variable component is linked to the Price development. So if inflation reaches or exceeds 1.5% in 2026, salaries will increase by another 0.5% in January 2027. In this scenario, the increase could reach 2% consolidated in 2026.
This program is part of a multi-annual framework agreed between the government and the UGT, CCOO and CSIF unions, which provides for a cumulative increase of around 10% 11% between 2025 and 2028. The stated aim is to recover some of the purchasing power lost in recent years and to provide salary stability in an economic environment still characterized by the volatility of inflation.
The impact that most noticed by public sector workers was the payroll for December 2025. The regulation allows public employees of the State to receive on this payroll both the 2.5 percent increase corresponding to the year and the Arrears accumulated since January. The amount varies depending on the professional group, professional level and supplements.
The civil servants with the highest salaries receive a Additional payment greater than 1,600 euroswhile in the intermediate categories it meant several hundred additional euros. In any case, for many civil servants it represents an economic relief after a year marked by increases in the cost of living.
But beyond the immediate impact in 2025, what will happen in 2026 is also important. The fixed 1.5% increase guarantees one consolidated increase on the payroll, regardless of how the economy develops. In addition, there is the review mechanism linked to the Consumer Price Index (CPI), which serves as a safety net against possible increases in inflation.
After years of salary freezes, adjustments due to the financial crisis and the pandemic, the government wants to use this system to prevent public salaries from falling behind prices again. It also aims at this Modernize compensation of the public sector and make it more competitive compared to other areas of work, at a time when attracting and retaining talent has become a challenge for many administrations.
A central point is the introduction of a variable component. And if the consumer price index is at a high level in 2026, civil servants will also reflect this price increase in their salaries. You get more on your payslipeven if it’s a year too late. In this way, the agreement attempts to balance the sustainability of public finances with the protection of workers’ purchasing power.
In practice, this means that payroll accounting will not be fully completed in 2026. Everything will depend on it how inflation develops all year round. If prices remain subdued, the increase will remain at 1.5%; Otherwise, the increase will be larger and consolidate in 2027.
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