Lorraine Williamson
The Spanish minimum wage rise for 2026 is now effectively locked in, after the government signed the agreement with Spain’s two largest unions. The new SMI is set at €1,221 gross a month in 14 payments, which is €17,094 a year, up 3.1% on the previous level. It is due to apply retroactively from 1 January 2026, meaning many workers should see back pay once it is formally approved and published.
The signing was staged with political intent. Pedro Sánchez attended alongside labour minister Yolanda Díaz and union leaders, while the employers’ association stayed away. Sánchez used the moment to press companies to raise wages more broadly, arguing that profits have grown while pay has not kept pace.
Who benefits, and what changes on the ground
This increase matters most in low-wage sectors and regions where pay sits close to the statutory floor. Reports around the agreement estimate it will affect between 1.6 million and 2.5 million workers, with women and younger employees overrepresented among those on the minimum wage.
In practical terms, the government and unions frame it as a simple reset: nobody working full-time should be paid below the new floor, even if a collective agreement sets base pay lower for a category. UGT says the key point for workers is the timing: once the decree is approved and published, the rise should be reflected with backdated effect from 1 January.
The detail people ask first: day rates, temporary work and domestic staff
The headline figure is monthly, but the agreement also sets minimums for other common pay formats. Europa Press reports a general daily minimum of €40.70, while temporary and seasonal workers have a higher daily minimum, and domestic workers have an hourly minimum. Those rates matter in agriculture, hospitality and home help, where contracts and hours vary.
Spain´s self employed are working but still falling into poverty
Why employers object, and what the next political fight may be
The CEOE’s opposition is not new, but the language has sharpened. Employers argue the rise interferes with collective bargaining and increases labour costs in sectors already under pressure.
There is also a second dispute brewing: whether companies can “absorb” the SMI increase by trimming supplements and bonuses, rather than lifting take-home pay in real terms. El País reports the government is considering measures to prevent that kind of accounting workaround.
What happens next
The agreement still needs the formal step that makes it enforceable: approval by the Council of Ministers and publication in the BOE. Once that happens, the key test will be speed. Workers will want the back pay landed quickly, and small employers will want clarity on payroll adjustments.
For the government, the bigger political bet is this: that the Spanish minimum wage rise feels tangible in everyday life, not just in a press conference photo.