Key changes and implementation dates of the reform
Royal Decree-Law 31/2026 of 20 October, aimed at improving Social Security protection and other social legislation, was published in the Spanish Official State Gazette (BOE) on 21 October 2026. It introduces significant changes to temporary incapacity (IT), benefits for the care of children affected by cancer or another serious illness (CUME), the self-employed social security regime and widow's and orphan's pensions.
The legislation entered into force on the day of its publication, but not all measures apply at the same time. For companies and HR departments, the key is to understand what is changing and when. It should also be noted that the Royal Decree-Law is still pending ratification by the Spanish Congress of Deputies.
| Effective date | Subject matter |
| 21/10/2026 | Calculation basis for temporary incapacity benefits for self-employed workers, survivor's pensions for unmarried partners, orphan's pensions in cases of violence against women, and benefits in the event of disasters |
| 23/10/2026 | CUME benefits and reduction in working hours under Article 37.6 of the Workers' Statute |
| 01/11/2026 | Extraordinary minimum pension for victims of terrorism and new maximum advance payment amount under the Child Maintenance Guarantee Fund |
| 01/12/2026 | Temporary incapacity (IT): new calculation basis, new special circumstances, qualifying contribution period, payment and social security contributions |
| 01/01/2027 | Adjustment of self-employed workers' social security contribution bases linked to benefits |
The most significant change: the new calculation basis for temporary incapacity benefits
With effect from 1 December 2026, the calculation basis for temporary incapacity benefits will no longer be determined using the contribution base from the month immediately preceding the start of sick leave. Instead, it will be based on the month immediately preceding the month before the qualifying event, i.e. two months earlier. This is not an average of two months: the calculation will continue to be based on a single month.
Therefore, for sick leave beginning in December 2026, the contribution base for October 2026 will be used, rather than that of November.
- Common contingencies: the contribution base for common contingencies for that month, divided by the number of days to which it relates. If the employee receives a monthly salary and has been registered with Social Security for the entire month, the divisor is 30.
- Occupational contingencies: the contribution base for occupational contingencies for that month, excluding overtime, divided by the corresponding number of days, plus overtime earnings from the year preceding the month before the start of sick leave, divided by 365.
- Recent hires: if the employee joined the company in the month preceding the start of sick leave, the contribution base for that month is used. If they joined in the same month as the start of sick leave, the contribution base corresponding to the days elapsed from their Social Security registration date to the day before the start of sick leave is used, divided by the number of those days.
This change also affects benefits calculated using the temporary incapacity calculation basis, such as CUME benefits and benefits for risks during pregnancy and breastfeeding. The Royal Decree-Law does not amend the specific rules applicable to part-time employees and permanent seasonal workers (Article 248 of the General Social Security Law).
Practical example
An employee receiving a monthly salary begins sick leave due to a common illness in December 2026. Their contribution base was €2,000 in October and €2,400 in November.
| Item | Previous rule (November) | New rule (October) |
| Daily calculation basis | 80,00 €/day | 66,67 €/day |
| Days 4 to 20 (60%) | 48,00 €/day | 40,00 €/day |
| From day 21 onwards (75%) | 60,00 €/day | 50,00 €/day |
Where there have been recent salary changes (pay increases, collective bargaining agreement revisions, variable remuneration or incentives), the difference between the two calculation methods may be significant. Under the fourth final provision, the amended wording of Article 171 takes effect on 1 December 2026, meaning that the new calculation method will apply to sick leave beginning on or after that date.
Two new special circumstances of temporary incapacity
Article 169.1.a) of the General Social Security Law (LGSS) reorganises the special circumstances of temporary incapacity due to common contingencies and introduces two new situations from a gender perspective:
- A limiting condition caused by a secondary menopausal disorder, classified under the corresponding medical code, while the employee is receiving healthcare from the Public Health Service and is unable to work.
- Injuries caused by gender-based violence committed by a man who is or has been the employee's spouse or partner, even if they have not lived together, while she is receiving healthcare and is unable to work as a result of those injuries. Before medical clearance is granted following recovery or improvement, official medical documents notifying the Public Prosecutor's Office or the judicial authority must have been issued, or a protection order, a decision imposing a precautionary measure, a report from the Public Prosecutor's Office identifying evidence of gender-based violence, or a criminal conviction must have been issued. These documents must expressly establish the causal link between the injury and the act of violence. The Public Health Service physician will identify this special circumstance using the corresponding medical code. The National Social Security Institute (INSS) will provide the employer with identification details of a purely administrative nature relating to the sick leave certificate.
These circumstances are added to those already recognised: secondary incapacitating menstruation, termination of pregnancy, pregnancy from week 39 onwards, and organ or tissue donation for transplantation.
| Special circumstance | Qualifying contribution period | Benefit amount from day 2 |
|---|---|---|
| Secondary incapacitating menstruation and termination of pregnancy | No | 60% (days 2 to 20) and 75% (from day 21 onwards) |
| Pregnancy from week 39 onwards | Yes, depending on age (Article 178.1 LGSS) | 60% and 75% |
| Organ or tissue donation | No | 100% of the calculation basis |
| New: secondary menopausal disorder | No | 60% and 75% |
| New: injuries caused by gender-based violence | No | 60% and 75% |
Who pays: In all special circumstances, the employer is responsible for paying the full salary on the first day of sick leave. From the following day, the benefit is paid by the INSS or the mutual insurance company covering common contingencies, without the employer having to cover days 4 to 15, as is the case with ordinary temporary incapacity. In addition, the obligation to pay Social Security contributions remains in place throughout all these circumstances.
These changes apply to temporary incapacity cases beginning on or after 1 December 2026 and also extend to the Special Social Security Scheme for Seafarers and, under their respective provisions, to the administrative mutual insurance schemes (MUFACE, MUGEJU and ISFAS).
Other changes to benefits
Care of children with cancer or another serious illness (CUME)
From 23 October 2026, Articles 190 to 192 of the General Social Security Law (LGSS) are amended, together with the reduction in working hours provided for in Article 37.6 of the Workers' Statute:
- The child's illness must require hospitalisation or an equivalent situation, under the terms to be established by implementing regulations. According to the preamble, the aim is to cover cases where, despite not being hospitalised, the child requires medical treatment of equivalent intensity.
- Exceptionally, the benefit and reduction in working hours may continue beyond the age of 26 if the person receiving care has a disability rating of 65% or more or a level III dependency classification, provided that they continue to live together and the need for care remains.
- The cohabitation requirement is considered fulfilled even if the person receiving care temporarily resides in a residential care facility or supported accommodation for respite or short-term stays, provided that effective and continuous care can be demonstrated.
- Both parents may receive the benefit alternately or simultaneously. If received simultaneously, each parent is entitled to 50% of their respective temporary incapacity calculation basis for occupational contingencies, regardless of the percentage reduction in working hours.
- In cases of marriage annulment, separation, divorce or dissolution of a registered partnership, or where the person concerned is recognised as a victim of gender-based violence, the entitlement is granted to the parent living with the person receiving care, even if the other parent is not employed.
- Unmarried couples with children together: the requirements for proving their relationship are relaxed. As a general rule, unmarried partnerships must be evidenced by registration in a regional or municipal register or by a public document. However, where the couple has children together, neither requirement applies.
- More than one child with a serious illness in the same family: both parents may be entitled to the benefit and reduction in working hours, provided that each meets the requirements and is responsible for caring for a different child.
- If the person receiving care marries or enters into an unmarried partnership, their spouse or partner will be entitled to a reduction in working hours if they meet the applicable eligibility requirements.
For companies, this means they may receive simultaneous requests for reductions in working hours to care for the same child, as well as requests for reductions extending beyond the age of 26. Collective bargaining agreements may allow reduced working hours to be accumulated into full days off.
Calculation basis for temporary incapacity benefits for self-employed workers
The new Article 318.h) of the General Social Security Law (LGSS) also applies the two-month rule to self-employed workers: the contribution base under the Special Social Security Scheme for Self-Employed Workers (RETA) for the month immediately preceding the month before the start of sick leave, divided by 30, regardless of the type of contingency. If registration with RETA took place in the same month as the start of sick leave, the same calculation rule applies to that month. If registration took place in the month preceding the start of sick leave, the contribution base for the month immediately preceding sick leave is used. Furthermore, when applying Article 173.1, references to the days on which the employer is responsible for paying the salary or benefit are disregarded. This measure applies from 21 October 2026.
In addition, from 1 January 2027, the contribution bases of self-employed workers used to calculate an already recognised benefit, those corresponding to subsequent periods up to the month of the qualifying event, and those relating to periods during which certain benefits are received while remaining registered with Social Security will become final and will be excluded from the annual contribution adjustment process.
Widow's and orphan's pensions
- Unmarried couples with children together: to qualify for a widow's or widower's pension, it is sufficient to demonstrate stable and publicly recognised cohabitation for at least two years immediately preceding the death, by means of a certificate of registration at the same address. Registration in an official partnership register or a public document is no longer required.
- A non-extendable period of 12 months is established to apply for or reinstate widow's or widower's pensions in certain cases predating the reform.
- Orphan's pensions in cases of violence against women: where death results from violence against women, the minimum monthly orphan's pension will be twice the monthly statutory minimum wage in force. If there are several beneficiaries, the combined amount cannot exceed this limit. Children who do not meet the requirements for an orphan's pension are entitled to an orphan's benefit of the same amount. Neither the pension nor the benefit ceases upon the adoption of the orphaned children. However, any new pension entitlement arising from the death of an adoptive parent will be incompatible with these benefits, and the beneficiary must choose between them.
Other measures
- Disasters: future legislation providing extraordinary protection in the event of a disaster may classify temporary incapacity, permanent incapacity or death and survivors' benefits as occupational contingencies.
- Terrorism: the extraordinary minimum pension will increase from three times the IPREM to twice the statutory minimum wage (SMI) from 1 November 2026, and compensation will be improved for victims without a court ruling establishing civil liability.
- Child Maintenance Guarantee Fund: the maximum advance payment will increase to €300 per month per beneficiary, and the eligibility requirements relating to residence, household composition and income thresholds will be amended. Existing advance payments will be reviewed automatically to apply the new amount from 1 November 2026. The new amount will also apply to applications awaiting a decision.
- Reduction in Social Security contributions for employees aged 62 and over on sick leave: the amended wording of Article 144.4 of the General Social Security Law (LGSS), effective from 1 December 2026, establishes employers' entitlement to a 75% reduction in employer Social Security contributions for common contingencies during periods of temporary incapacity affecting employees aged 62 and over, without the provisions of Article 20.1 LGSS applying. Companies should check that this reduction is being applied.
What companies should review
The reform does not change the allocation of costs for temporary incapacity due to common contingencies, but it makes it advisable to review certain payroll and HR management processes. We recommend:
- Updating the calculation of the benefit calculation basis in payroll software for sick leave beginning on or after 1 December, and reviewing the system settings for the new special circumstances.
- Reviewing temporary incapacity benefit supplements provided for in collective bargaining agreements or company agreements. If these are calculated based on the benefit amount, the new calculation basis may affect the amount payable by the employer. Companies should also check that the 75% reduction in Social Security contributions is being applied for employees aged 62 and over on sick leave.
- Correctly identifying special circumstances based on the information provided by the INSS and handling them with the utmost confidentiality, particularly in cases of gender-based violence.
- Preparing for requests for reduced working hours under CUME from both parents or extending beyond the age of 26, which have been applicable since 23 October. Application and response templates, work-life balance policies and criteria for rejecting requests on the grounds that only one parent could exercise the right must be updated, along with their alignment with the Equality Plan.
It is also advisable to monitor the parliamentary process: if the Royal Decree-Law is ratified and subsequently processed as a bill, its provisions could be amended.
At Baker Tilly, we support companies in adapting their payroll processes, reviewing temporary incapacity benefit supplements and managing Social Security benefits, ensuring that these changes are implemented correctly from day one.
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