Spain proposes €1,286 minimum wage for 2027

Spain’s government has proposed increasing the national minimum wage to €1,286 gross per month in 2027, giving the country’s lowest-paid workers an additional €65 per payment. The 5.3% rise would take annual minimum earnings to €18,004, although the measure still requires formal government approval before becoming law.

The proposal, published by the Ministry of Labour on Thursday 5 November, goes beyond the increase recommended by its independent advisory committee. It has also reopened debate between trade unions and employers over wages, inflation and the cost of employing staff.

The draft legislation would raise Spain’s Salario Mínimo Interprofesional (SMI) from the current €1,221 to €1,286 gross per month, calculated over 14 payments. That represents an annual increase of €910, bringing the minimum from €17,094 to €18,004 for a full-time employee.

According to RTVE, the Ministry of Labour has opened the draft decree to public consultation before submitting it to the Council of Ministers. The proposed figure could still be amended during that process, so workers should not yet treat the higher amount as an approved entitlement.

What would the new minimum wage mean for workers?

Spain’s minimum wage is commonly expressed as 14 monthly payments rather than 12, reflecting the two additional salary payments traditionally made during the year. Employees who receive their extra payments spread across 12 months would see the equivalent of approximately €1,500.33 gross per month under the proposed 2027 rate.

The figures are gross amounts, meaning they are calculated before applicable Social Security contributions and income tax. Actual take-home pay depends on individual circumstances, including contract arrangements, deductions and tax treatment, so the proposed increase would not necessarily translate into an additional €65 in every monthly bank payment.

These rates apply to the statutory minimum for full-time employment. Part-time employees are entitled to the corresponding proportional amount, while collective agreements may establish higher minimum salaries for particular industries or occupations.

Why has the government proposed a 5.3% increase?

The Ministry of Labour, led by Yolanda Díaz, has put forward a larger rise than the 4.9% recommended by the expert committee advising the government. That committee had suggested increasing the minimum wage by €60 per payment, while the ministry’s proposal adds a further €5.

The government argues that the increase is needed to protect purchasing power and maintain progress towards a minimum wage equivalent to 60% of Spain’s average earnings, a benchmark associated with the European Social Charter. Inflation and the cost of everyday essentials remain central concerns for households, particularly those with limited disposable income.

Trade unions CCOO and UGT had called for a larger increase of 7%, arguing that lower-paid workers need greater protection against rising living costs. Employers’ organisations have raised concerns about the timing of the proposal and the financial pressures facing businesses, particularly those with significant staffing costs.

What about domestic workers and short-term contracts?

The draft also includes specific minimum rates for certain employment arrangements, including domestic workers paid by the hour and employees on short fixed-term contracts. These provisions are particularly relevant to households employing cleaners or other domestic staff, as well as businesses relying on temporary or seasonal workers.

Under the proposal, domestic workers employed externally and paid by the hour would receive at least €10.06 for each hour actually worked, including the relevant proportional entitlements. Workers on fixed-term contracts lasting no more than 120 days with the same employer would have a proposed minimum of €60.88 for each legally defined working day.

The figures form part of the draft decree and are not yet in force. Employers should continue applying the current legal rates until any new legislation is formally approved and takes effect.

Could salary supplements affect the increase?

One important detail concerns the treatment of salary supplements, which can include payments linked to seniority, night work, hazardous duties or other employment conditions. The draft retains existing rules allowing certain supplements to be taken into account when determining whether an employee’s overall annual remuneration meets the statutory minimum.

This means that not every worker whose basic salary is below the proposed figure would automatically receive the full increase on top of all existing supplements. The outcome depends on the nature of those payments, the employment contract and the applicable collective agreement.

Trade unions have criticised this arrangement, arguing that it can reduce the practical benefit of minimum wage increases for some employees. The government has nevertheless retained the provisions in its current proposal, leaving the issue unresolved.

When could the new minimum wage take effect?

The Ministry of Labour has opened the proposed decree to public consultation, with submissions accepted until 16 November. The government has indicated that it wants to approve the increase before Spain’s general election on 29 November, although the final timetable will depend on the remaining legislative steps.

If adopted in its present form, the proposed minimum wage would apply from 1 January 2027. Until the Council of Ministers approves the decree and it is officially published, however, the existing minimum wage remains the applicable legal rate.

For employees and employers alike, the coming weeks will determine whether the proposed €1,286 monthly minimum becomes law. The immediate point is clear: Spain is considering a further increase in its wage floor, but the higher payments have not yet been authorised.