On 28 April this year, the Council of Ministers approved the so-called “First of May Labour Decree 2026”, which introduces a comprehensive package of measures to support incomes and promote stable employment.
Among the main new features:
- three-year incentives and contribution relief for the recruitment of young people and women on permanent contracts, with enhanced measures in Special Economic Zones;
- access to benefits subject to the requirement of a “fair wage”, as defined by the most representative collective agreements;
- in terms of corporate welfare, fringe benefits exempt from tax up to €1,000 or €2,000 are confirmed, with eligible expenses now extended to include domestic utilities and housing.
Also notable are the provisions regarding work via digital platforms, aimed at tackling illegal labor practices and guaranteeing greater transparency and minimum protections.
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