The new Royal Decree-Law 1/2025 contains almost all of the social safety net measures that the Government approved in December but failed to secure the necessary support from Congress on January 22, 2025, to ratify Royal Decree-Law 9/2024 (better known as the "omnibus" law). These measures include the revaluation of pensions in line with the Consumer Price Index (CPI), improvements to minimum pensions, aid for municipalities, households, and businesses affected by the DANA storm, subsidies for public transportation, and aid for those affected by the La Palma volcano eruption. Furthermore, it also includes an additional housing measure, not present in the previous decree-law, which is the creation of a public system of guarantees and sureties for landlords and tenants.

Following the non-validation of Royal Decree-Law 9/2024 on urgent measures in economic, tax, transport and Social Security matters, the Council of Ministers approved on January 28 Royal Decree-Law 1/2025, which approves urgent measures in economic, transport, Social Security matters and to address situations of vulnerability, published in the BOE on January 29.

Royal Decree-Law 1/2025 entered into force on January 30, 2025.However, Articles 64 (limit on the amount of public pensions), 65 (revaluation of pensions and other public benefits) and 66 (update of the maximum and minimum contribution bases in the Social Security system) will have retroactive economic effects from January 1, 2025.

Royal Decree-Law 1/2025 includes a set of urgent measures concerning the economy, transportation, social security, and the protection of vulnerable groups. This legislation largely reactivates provisions of Royal Decree-Law 9/2024, while introducing modifications to improve its applicability and legislative viability. Furthermore, it introduces new elements regarding housing and transportation subsidies, expanding the coverage previously provided. The tax measures (contained in Royal Decree-Law 9/2025) have not been included in this Royal Decree-Law 1/2025.

1. Economic and territorial financing measures

The economic measures contained herein aim to strengthen financial stability, support companies affected by natural disasters, and guarantee the fiscal autonomy of certain autonomous communities.

1.1 Suspension of the foreign investment liberalization regime

• The restriction on foreign direct investment in strategic companies is extended until December 31, 2026 .
• Applicable to investments exceeding 500 million euros in listed and unlisted companies in critical sectors, such as infrastructure, defense, telecommunications and energy .

1.2 Exemption from accounting losses for companies affected by the DANA

• Companies affected by the DANA storm in the Valencian Community are exempt from dissolution due to losses until the end of the 2026 financial year .
• Companies will need to provide documentary evidence of the impact on their annual accounts.

1.3 Special funding for the Valencian Community

• The State will allow the Valencian Community to contract new long-term debt operations to cover expenses derived from the DANA storm.
• This funding is part of the Fund for Financing Autonomous Communities, expanding its allocation.

2. Transport measures

2.1 Direct aid to public transport

• From July 1st to December 31st, 2025The Government will implement direct bonuses to the public for the use of public transport:
  • Completely free for children under 14 years old.
  • 50% discount on youth transport tickets.
  • 20% discount on general season tickets and multi-trip tickets.
• This measure involves an injection of resources to autonomous communities and municipalities, with the commitment that they will contribute at least an additional 20% in subsidies.

2.2 Discounts on rail transport

• Commuter and Medium Distance (Renfe): Reduced fares and new transport tickets with discounts of up to 40% on recurring journeys are introduced.
• Strategic AVANT lines : 50% discounts on services between Ourense-A Coruña, Madrid-Salamanca and Alicante-Murcia .

2.3 Promotion of sustainable mobility

• They are allocated direct subsidies for:
  • The acquisition of electric and pedal-assisted bicycles by individuals.
  • Companies dedicated to sustainable urban distribution.
• Investment in bicycle loan systems in municipalities.

2.4 Specific benefits for the Canary and Balearic Islands

• Free transport passes and multi-trip tickets in the Canary and Balearic Islands.
• 50% discount on sea and air transport for residents of these territories.

3. Social Security and labor measures.

 3.1 Revaluation of pensions and social protection

The increase in pensions responds to the Government's commitment to maintain the purchasing power of pensioners through indexing pensions to the CPI.

3.1.1 Revaluation of contributory and non-contributory pensions

• A 2.8% increase is applied to all contributory and non-contributory pensions , based on the evolution of the CPI in 2024.
• The automatic revaluation guarantee is maintained , preventing the loss of purchasing power.
• The Gender Gap Reduction Supplement for Pensions is included , which is updated to €35.90/month .

3.1.2 Minimum pensions and maximum limit

• A maximum public pension limit of 3,267.60 euros per month or 45,746.40 euros per year is set .
• Minimum retirement pensions:
  • Holder with dependent spouse: €15,786.40/year.
  • Holder without spouse: €12,241.60/year.
  • Holder with non-dependent spouse: €11,620/year.

• Orphanhood:

1. Sole beneficiary: €3,745/year.
2. Absolute orphanhood: It will be increased by €9,275/year distributed among the beneficiaries.

• Widowhood:

1. With family responsibilities: €15,786.40/year.
2. Between 60 and 64 years: €11,452/year.
3. Under 60 years of age: €9,275/year.

3.2 Contribution bases and new contribution scheme

3.2.1 Update of the maximum and minimum contribution base

• The minimum contribution base will grow in the same proportion as the Interprofessional Minimum Wage (SMI) increased by one sixth.
• The maximum contribution base will increase in 4%, composed of:
  • 2,8% corresponding to the revaluation of pensions.
  • 1.2% additional derived from Transitional Provision 38 of the General Social Security Law.

This measure affects all employees within the general Social Security system.

3.2.2 Intergenerational Equity Mechanism (IEM)

• The additional contribution of 0.80%, divided into:
  • 0.67% to be paid by the employer.
  • 0.13% to be paid by the employee.
• Its purpose is to strengthen the public pension system in the long term and anticipate the challenges of population aging.

3.2.3 Additional solidarity contribution

• It affects workers with incomes above the maximum contribution base.
• A progressive additional contribution will be applied to the excess salary that exceeds the maximum base .

3.3. Labor measures and job protection

3.3.1 Protection of employment in companies receiving aid

Companies receiving public aid must comply with strict job retention conditions:

• Ban on layoffs due to increased energy costs until December 31, 2025.
• Refund of aid in case of unjustified dismissals.

3.3.2 Regulation of ERTEs

• The social security contribution benefits for companies that adopt Temporary Employment Regulation Files (ERTEs) are maintained .
• The obligation to maintain employment for a minimum of six months after the end of the ERTE (Temporary Employment Regulation File) is intensified

3.3.3 Companies affected by the volcanic eruption of La Palma

• Temporary layoff schemes (ERTEs) due to force majeure are extended until June 30, 2025 for companies based in El Paso, Los Llanos de Aridane and Tazacorte .
• It is allowed deferral of Social Security contributions payments:
  • December 2024 – May 2025 for companies.
  • January 2025 – June 2025 for self-employed workers.
• The extraordinary benefit for cessation of activity for affected self-employed workers remains in place

3.4. Exemptions and benefits in social security contributions

Royal Decree-Law 1/2025 introduces specific measures for key sectors, especially the maritime-fishing sector.

3.4.1 Exemption from social security contributions in the maritime-fishing sector

• Self-employed workers in the Special Scheme for Seafarers are excluded from the solidarity contribution , which will only be applicable to employed workers.

3.4.2 Amendments to the Law on Passive Classes

• A transitional provision is introduced that aligns the evolution of pensions under the Civil Service Pension Scheme with the progressive increase in the maximum contribution base .

3.4.3 Contribution benefits for ERTEs and the RED Mechanism

• The exemptions in contributions are conditional upon the obligation to maintain employment for a minimum period of six months and a maximum of two years after the end of the ERTE.

3.5 Measures NOT included in Royal Decree-Law 1/2025

Although Royal Decree-Law 1/2025 includes key reforms in Social Security and employment, some measures proposed in Royal Decree-Law 9/2024 were left out and are in the negotiation phase.

• Extension of the SMI 2024 (pending negotiation with unions and employers).
• Early retirement age for healthcare personnel in air transport.
• Modification of the social security contributions of self-employed workers with inter-cooperative systems.
• Extension of the cancellation period for loans granted to Social Security.

4. Protection of vulnerable groups and housing

4.1. Suspension of eviction proceedings and evictions for vulnerable households

One of the most important measures regarding housing is the extension of the suspension of evictions for tenants in situations of economic vulnerability.

4.1.1 Who can benefit from this suspension?

The following may be eligible for this measure:

• People at risk of social exclusion who do not have alternative housing.
• Families with reduced incomes whose economic level has been affected by social or employment emergencies.
• Victims of gender violence, dependent persons, single-mother or single-parent families with dependent children.
• People who are long-term unemployed and do not have sufficient income to cover their rent payments.

4.1.2 Suspension conditions

• The court must assess the tenant's socioeconomic situation before ordering the eviction.
• A moratorium is granted until December 31, 2025 , during which evictions and forced removals cannot be carried out in cases of primary residence .
• Public Administrations are required to guarantee housing solutions before eviction occurs.

4.1.3 What type of housing does it apply to?

• Homes belonging to large landlords (legal entities or individuals with more than 10 homes).
• Homes owned by investment funds or SOCIMIs that are in the process of eviction.
• In some cases, homes owned by individuals, if the landlord does not prove that he depends on the rent as his only source of income.

4.2. Suspension of evictions in criminal proceedings and other cases

In addition to protection in rental cases, Royal Decree-Law 1/2025 establishes a moratorium on criminal proceedings related to housing.

• Application to oral trials: Suspension of eviction is permitted when the defendant can prove a situation of economic vulnerability.
• Occupied dwellings owned by large landlords: Evictions may be suspended in cases of squatting in habitual residences, provided that the occupants demonstrate a lack of income and absence of alternative housing.

4. 3. Compensation for landlords affected by the suspension of evictions

Royal Decree-Law 1/2025 establishes a system of compensation for owners and real estate companies affected by the suspension of evictions.

4.3.1 Who can claim compensation?

• Owners of rented homes who have seen the eviction process delayed due to the suspension.
• Individuals and legal entities that prove that the non-payment of rent has resulted in significant economic damage.

4.3.2 How is compensation calculated?

• The compensation will be calculated based on the average rental value of the area and the current expenses assumed by the owner.
• Applications can be submitted until January 31, 2026.

4.3.3 How are these compensations managed?

• The Autonomous Communities will be responsible for managing and processing the applications.
• Specific funds will be established to guarantee coverage of these compensations.

4.4. Creation of a public guarantee system for owners and tenants

One of the most important new features of Royal Decree-Law 1/2025 regarding housing is the creation of a system of guarantees and sureties to promote access to rental housing.

4.4.1 What does this system consist of?

• The State will act as a guarantor in rental contracts for young people and vulnerable families, guaranteeing the payment of rent in case of temporary non-payment by the tenant.
• The aim is to reduce uncertainty for landlords, making it easier for more homes to enter the rental market at affordable prices.

4.4.2 Who can benefit?

• Tenants with low incomes who can demonstrate difficulty accessing housing on the open market.
• Young people under 35 years of age in precarious employment situations.
• Vulnerable families with demonstrable economic difficulties.

4.4.3 How does it work?

• The State covers rent defaults for up to a maximum of 12 months.
• The tenant must repay the amount owed in reduced installments, with the possibility of full or partial subsidy in cases of serious vulnerability.

5. Support in accessing energy and water

measures for basic supplies.

5.1 Electricity social bonus

January – June 2025:

• 50% discount for vulnerable consumers.
• 65% discount for severely vulnerable people.

July – December 2025:

• 42.5% discount for vulnerable consumers.
• 57.5% discount for severely vulnerable people.

5.2 Guarantee of access to basic supplies

• Prohibition of electricity and water cutoffs for vulnerable consumers until December 31, 2025.
• Local councils and autonomous communities must guarantee alternative payment options and financing plans for households at risk of social exclusion.

You can contact this professional office for any questions or clarifications you may have.

Warm regards,

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A Àmbit Assessor, SL has 40 years dedicated to the tax, comptable and labor consultancy of the Pime.

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