Royal Decree-Law 14/2025, of December 2, which approves urgent measures regarding remuneration in the public sector, regulates the remuneration increase for personnel serving the public sector for the years 2025 and 2026.

As provided in Article 3:

1. Public administrations will establish the payment schedule for the amounts and arrears corresponding to the 2025 financial year, within the corresponding framework of the union negotiation of each area of administration. This payment may be distributed during the fiscal years 2026, 2027 and 2028 or made effective in December 2025.

2. In the state public sector, the increase corresponding to 2025 will be made effective in December 2025, with the corresponding amounts being paid as arrears from January 2025.

The Resolution of December 3, 2025, from the State Secretariat for Budgets and Expenditures, dictates instructions on payment to personnel of the state public sector of the 2.5 percent pay increase for the year 2025. This increase will be paid in the December payroll, except in exceptional circumstances, in which case it will be paid in the first payroll where possible.

From a tax perspective, the temporary attribution of income is covered in Article 14.1.a) of Law 35/2006, of November 28, on Personal Income Tax and partial amendment of the Corporate Income Tax, Non-Resident Income Tax and Wealth Tax laws, which establishes as a general rule for employment income its attribution"to the tax period in which they are due to the recipient."

Consequently, regarding the increases for state public sector personnel:

• The remuneration amounts corresponding to the increase provided for in Article 1 of Royal Decree-Law 14/2025 must be attributed to the period in which they are due, that is, the 2025 tax period.

• Those paying these salary increases who include them in the December 2025 payroll must declare them in the model 190 corresponding to the 2025 fiscal year (to be submitted in January 2026).

• Those paying these salary increases who exceptionally make them in a 2026 payroll must declare them in the model 190 corresponding to the 2026 fiscal year as arrears from 2025.

• Those receiving these pay increases will declare them, where applicable, in their Personal Income Tax return for the year 2025.

Regarding increases for staff in the regional and local public sector:

• They will be charged to the financial year in which they are due in accordance with the provisions adopted by each regional or local administration, taking into account that article 3.1 of Royal Decree-Law 14/2025 indicates that «(...); This payment may be distributed during the fiscal years 2026, 2027 and 2028 or made effective in December 2025».

• Those paying these pay increases must declare them in the form 190 corresponding to the year in which they are required.

• Those receiving these pay increases will declare them, where applicable, in their Personal Income Tax return for the year in which they are due.