Spain's King Felipe VI has slashed his salary as head of state by 20 per cent for 2015, a move in line with his pledges for a more moderate, fewer-frills monarchy.

A palace statement Tuesday detailing the royal household's 2015 budget said Felipe, 47, would receive €234,204 ($334,314 Canadian), a fifth less than his father and predecessor, Juan Carlos, received as monarch before abdicating last June.

Juan Carlos, who retains his honorary title of king, will receive €187,356.

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The palace budget, which has been frozen or cut since 2009 as Spain suffered hard economic times, remains unchanged in 2015 at €7.8-million.

Felipe has striven to improve the monarchy's image, which has been tarnished by a number of scandals in recent years.