Lorraine Williamson
The Spanish government has reached an agreement with trade unions to raise the minimum wage (SMI) in Spain by €50 to €1,184. The increase, representing a 4.4% rise, will be retroactively applied from 1 January and paid fourteen times a year.
Minister of Labour Yolanda Díaz highlighted the success of social dialogue, despite employer opposition. She described the decision as an important step for Spain and confirmed that the measure will soon be approved by the Council of Ministers.
Employer opposition to the increase
For the fifth consecutive year, Spain’s main employer association, CEOE, declined to sign the agreement. The organisation had proposed a 3% increase, which would have set the minimum wage at €1,168 per month. This proposal was rejected by the government and trade unions, who originally pushed for €1,200, but later accepted the compromise figure.
Further negotiations planned
Díaz announced that her ministry will convene another meeting within two months to discuss unresolved issues. These include the adaptation of the European directive on minimum wages, which will be implemented at a later date. Additionally, Labour Inspectors will monitor compliance with the new minimum wage in Spain.
Future union demands
Unions have stated that upcoming negotiations will focus on wage supplements and tax exemptions for the lowest earners. A key demand is to exempt the minimum income from income tax, but the Spanish Ministry of Finance currently has no plans to implement this measure. As a result, tax exemptions will remain a central point of discussion in future talks.