From public transport to pensions: everything that is being extended in 2026

MadridIn the last cabinet meeting of the year, the Spanish government approved a set 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 Congress for ratification. One royal decree-law covers the continuation of subsidies for public transport and the new single pass for travel throughout the country. The second decree-law 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:

Public Transport

The extension of current public transport discounts until 2026 has been approved. A new single pass for medium-distance trains, commuter rail, and the national bus service has also been created. The Ministry of Transport estimates that the impact of both measures will be €1.371 billion.

Social shield

After an agreement with EH BilduThe Spanish government is keeping the social safety net in place throughout 2026. This includes a ban on evicting vulnerable families without alternative housing, a ban on cutting off basic utilities (electricity, water, and gas) to vulnerable households, and maintaining the social electricity and heating subsidies, which range from 65% to 4%.

Pensions

The increase in contributory pensions, such as retirement pensions and orphan's pensions, was approved at 2.7%. The increase in minimum pensions, non-contributory pensions, and the minimum living income was also approved, ranging from 7% to 11.4%.

Minimum Wage

The current minimum wage (SMI) is extended. This measure, approved annually pending a new update to ensure the latest increase, that of 2025, does not expire. Otherwise, it reverts to the previous SMI. 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

After failing to reach an agreement with unions and employers' associations, the Spanish government has frozen current social security contributions for the self-employed. The Ministry of Social Security is confident that a consensus on new contributions will be reached in 2026, as stipulated by law.

2023 Budget

The Spanish government has had to extend the current budget again, which is the 2023 budget. Since then, Pedro Sánchez's administration has not presented new public accounts, although it has committed to doing so in 2026.