From public transport to pensions: everything that is being extended in 2026
The Spanish government estimates the continuation of discounts and the new single pass at 1.371 billion.
MadridIn the last cabinet meeting of the year, the Spanish government approved the extension of a series of social and economic measures that will remain in effect through 2026. These measures will be outlined in two royal decree-laws that will now go to the Congress of Deputies for ratification. One royal decree-law covers the continuation of subsidies for public transport and the new single pass for travel throughout Spain, while the second will cover the social safety net, as well as other measures to be extended before December 31st, when they expire. These are the most noteworthy measures:
Public Transport
The current discounts on public transport provided by the Spanish government will be extended throughout 2026. This means that the reduction of up to 50% on season tickets and multi-trip passes will continue, as will free urban and metropolitan transport for children under 14. Discounts for regular commuter and regional train users will also remain in place, as will the reduced fares on state-run buses. The difference in 2026 is that the Spanish government will maintain funding regardless of the actions of the relevant authorities, i.e., the regional or local governments. Previously, these subsidies depended on whether these bodies also offered discounts on some tickets. In addition, a new three-month pass has been approved for any origin and destination on an Avant train journey. The discount on this pass will increase with frequent travel. Finally, the new single pass for the entire country has also been approved, covering medium-distance, commuter, and state bus services (it does not include long-distance, high-speed, metro, or intercity buses). The impact of all these measures will be €1.371 billion, according to calculations by the Ministry of Transport.
Social shield
The social safety net remains in place throughout 2026. This includes the ban on evicting vulnerable families without alternative housing, the ban on cutting off basic utilities (electricity, water, and gas) to vulnerable households, and the electricity social voucher subsidies, which range from 57.75% to 42.4% depending on vulnerability.
Pensions
The increase in contributory pensions, such as retirement and orphan's pensions, has been approved at 2.7% in 2026. The minimum pensions will also increase between 7% and 11.4%, and non-contributory pensions and the minimum living income will rise by 1%.
The current minimum wage (SMI) is extended pending a new update. This is to ensure that the last increase, scheduled for 2025, does not expire. The current minimum wage is set at €1,184 per month, paid in 14 installments. The Ministry of Labor, unions, and employers' associations have already begun negotiating the 2026 increase.
Self-employed
Following the deadlock in negotiations, the Spanish government has frozen current social security contributions for the self-employed, extending them into the next fiscal year. The Ministry of Social Security is confident that an agreement on new contributions will be reached in 2026, as stipulated by law.
Tax incentives
The continuation of tax incentives for individuals and businesses to purchase an electric vehicle, install a charging point (including a 15% income tax deduction), or carry out energy efficiency improvements has been approved.
2023 Budget
The year 2026 will begin with the 2023 state budget, which the government extended this Tuesday. Since then, Pedro Sánchez's administration has not presented a new budget, although it has pledged to do so in 2026.