Simply saying “salary under the collective bargaining agreement” will become increasingly insufficient. The Royal Decree 723/2026, approved on September 8 and published in the Official State Gazette (BOE) on September 15, will take effect on October 5, and strengthens workers’ right to be informed in writing about the main terms of their employment relationship.
The new regulation requires that the information provided must include, among other aspects, the base salary and the supplements separately, their frequency and method of payment, as well as the system for calculating the variable components in job offers. It must also specify the duration and distribution of the workday, vacations, duties, the probation period, or training. If these conditions change, the company must communicate it in writing.
For employment relationships that are already in force when the regulation takes effect, workers may request the information they do not have, and the company will have 30 business days to provide it.
From How Much Will I Earn? to What Exactly Does My Compensation Include?
This change also occurs within a European context where pay transparency is gaining prominence. European Directive 2023/970 sets out new rights related to pay information and establishes that candidates must receive information about the initial compensation or the salary band corresponding to the position.
The discussion about salary, therefore, goes beyond the figure on the pay stub. For workers, knowing the true value of an offer means understanding what portion is fixed salary, what supplements exist, how variable compensation works, and what additional benefits the company offers.
According to data from various studies, only one in five companies currently provides information about salary ranges, while those with pay transparency policies can reduce staff turnover by up to 15%.
“Pay transparency is not only about showing a number, but about the employee truly understanding what they receive, why they receive it, and the total value of their compensation,
say Betterfly.
Total compensation takes center stage
According to Betterfly, the integration of flexible compensation, benefits, and wellbeing in a single digital environment makes a difference in the new work paradigm. For Betterfly, centralization represents a real transparency exercise for employees, as it allows them to visualize in a simple, intuitive, at-a-glance view the total and comprehensive value of their compensation package.
Access to this information without opacity is a fundamental right that provides them security, strengthens their sense of belonging, and helps them understand exactly how the company invests in their overall wellbeing.
The objective is to move toward an employment relationship in which the worker can know more clearly what they will earn, how it is calculated, and what other elements form part of their compensation.
