Lorraine Williamson
Spain’s minimum wage could rise to around €1,307 gross per month in 2027 under a new proposal from the country’s two largest trade unions, UGT and CCOO. The unions are demanding an increase of at least 7% to help workers cope with rising living costs, but the government has not yet approved the change.
The demand was presented by UGT general secretary Pepe Álvarez and CCOO general secretary Unai Sordo during a joint press conference in Madrid. The union leaders argued that the rise in consumer prices has eroded the value of this year’s pay increase and that further action is needed to prevent lower-paid workers from falling behind.
The unions are also calling for wider wage increases across Spain, making the minimum wage proposal part of a broader campaign over pay, housing affordability and living standards.
How much is Spain’s minimum wage now?
Spain’s current minimum wage, known as the Salario Mínimo Interprofesional (SMI), is €1,221 gross per month when paid in 14 instalments. This is equivalent to €17,094 gross per year, following a 3.1% increase approved in February 2026 and applied retrospectively from 1 January.
For workers who receive their annual salary in 12 monthly payments, with the two additional payments spread throughout the year, the equivalent is €1,424.50 gross per month. The annual minimum remains the same regardless of which payment arrangement an employer uses.
The 2026 minimum wage applies nationally, including to eligible workers in agriculture, industry, services and domestic employment. For part-time workers, the minimum is calculated proportionately according to their working hours.
What would a 7% increase mean for workers?
If the unions’ proposal were adopted in full, the minimum wage would rise to €1,306.47 gross per payment, usually rounded to approximately €1,306.50. Over 14 payments, that would represent around €18,290.58 gross per year, an increase of approximately €1,196.58 compared with the current annual minimum.
For employees receiving their wages over 12 months, the equivalent would be approximately €1,524.22 gross per month. These are gross figures, before any applicable deductions, so the amount actually received in a worker’s bank account would depend on their individual circumstances.
The proposed increase would directly affect employees whose pay is at or near the legal minimum. Workers already earning above the minimum would not automatically receive a 7% increase, although changes to the SMI can influence wider pay negotiations.
Why are the unions demanding a bigger increase?
UGT and CCOO argue that recent inflation has reduced the purchasing power of workers, particularly those on lower incomes. They say this year’s minimum wage increase has not been enough to offset rising prices and want the next adjustment to reflect the pressure on household budgets.
Housing costs are a central part of the unions’ argument. They maintain that pay increases alone cannot resolve the difficulties many households face in accessing affordable accommodation, but insist that wages must rise alongside stronger housing policies.
The unions have also proposed broader salary increases of between 4% and 7%, depending on pay levels, as part of their demands for future collective bargaining agreements. These proposals are separate from the legal minimum wage and would require negotiation with employers.
Minimum wage demand linked to November strike
The announcement came as UGT and CCOO outlined their plans for a general strike on 11 November. The unions are using the planned action to press for improvements in wages, housing affordability and other economic and social policies.
Their demands include measures to increase the supply of affordable housing and address the growing financial pressure on working households. Union leaders argue that the combination of wages and housing costs has become a major obstacle to economic security.
The minimum wage proposal therefore forms part of a wider dispute over living standards rather than a standalone request for an annual pay adjustment.
When will Spain’s 2027 minimum wage be decided?
The government has begun the process of considering the minimum wage for next year, with its advisory commission examining the appropriate level. The commission’s recommendations will help inform the eventual decision, although they do not automatically determine the final amount.
Spain’s minimum wage is set by the government following consultation with trade unions and employers’ organisations. The outcome may differ from the 7% increase being requested by UGT and CCOO.
For now, the legally applicable minimum remains €1,221 gross per month in 14 payments. Workers and employers should treat the proposed 2027 figure as a demand under discussion, not a confirmed change to wages.