Spain is testing a shortened working week with equal pay as part of a small pilot project, state broadcaster RTVE reported, citing the Industry Ministry.

If the results of the trial period, which will initially last two years, are positive, the measure can be extended to other parts of the labor market.

A total of 10 million euros are available for the project, which was published in the Official Gazette yesterday.

Small and medium-sized enterprises, with a maximum of 249 employees in the production sector, can participate in the project. The state will pay them a maximum of 150.000 euros if they reduce weekly working hours by at least 10 percent for 25 to 30 percent of employees, depending on the size of the company.

Participating companies must also demonstrate internal organizational improvements in the first year of the trial period in order to improve productivity and compensate for higher hourly wages.

Companies are free to decide whether to reduce daily working hours or introduce a four-day working week.