Spain labor inspection proposes 858 million euros in fines for 2025

Spain's Labor and Social Security Inspection (ITSS) reported a significant increase in enforcement actions for 2025. The agency proposed fines totaling 858.26 million euros, a 58.62% increase from the 541 million euros proposed in 2024. During the year, inspectors detected 131,645 irregular jobs, representing a 68.1% rise compared to the previous year.

In addition to increased sanctions, the ITSS recovered 1,212.3 million euros in Social Security contributions, up 28.8% from 2024. The agency's efforts also led to the formal registration of 96,194 workers in the Social Security system.

Separately, the Ministry of Labor is finalizing a royal decree aimed at monitoring the dismissal of employees over the age of 50 in profitable companies. The regulation seeks to prevent companies from avoiding the 'Telefónica amendment'—which requires profitable firms to reimburse the state for benefits paid to older workers during restructuring—by using individual dismissals instead of collective ones. Under the new rules, companies could face fines of up to 250,000 euros for failing to justify these departures to the State Public Employment Service (SEPE).