Prime Minister Sánchez of Spain announced another increase in the minimum wage (SMI) on Tuesday. With retroactive effect, the minimum wage will be increased from 1,000 to 1,080 euros as of 1 January, paid in 14 payments spread over the year.
Minister Yolanda Díaz said on Tuesday that she was pleased with the agreement reached between the main workers’ unions and the Spanish government. The Spanish Prime Minister already made this announcement yesterday, however, the increase will only become final in two weeks when it is approved by the Spanish Council of Ministers. Although the unions have agreed with the increase to €1,080, their demand was to increase the amount to €1,100. This was to compensate for the loss of purchasing power.
Still far from Belgium and the Netherlands
The increase to €1,080 means that around 2 million Spaniards will benefit by €80 euros per month. After this increase, Spain ranks eighth among EU countries with the highest minimum wage. Despite this, the Spanish minimum wage is just over half of the minimum wage in the Netherlands (€1,934) and Belgium (€1,955).
Spanish Prime Minister Sánchez proud of minimum wage increases
Between 2009 and 2016, the minimum wage in Spain stood still. Only since Pedro Sánchez took office as Prime Minister of Spain in 2018 was this amount finally increased. Between 2018 and 2023, Spaniards who receive this wage have gained an average of €344 per month.
Although many Spaniards may benefit from this increase, Sánchez uses this announcement in the middle of the election battle that is currently underway between him and Alberto Núñez Feijóo in the Senate. The Spanish prime minister called out to large companies that have been able to make a lot of profit in the past year, but whose employees have not seen a penny extra.