The minimum wage in Spain will increase 50 euros monthly this year and since 2018, when the current coalition arrived in the government and the value was 735.9 euros, has increased 60.91%
The minimum wage in Spain will increase by 4.41%to 1,184 euros monthly paid 14 times a year, the Minister of Labor, Yolanda Díaz, announced on Wednesday.
The value of the new minimum wage (16,576 euros annual), agreed on Wednesday between unions and government, will already be applied to salaries in January, according to Minister Yolanda Diaz, who is also the party leader, a left-wing platform platform which is part of the coalition government led by the socialists.
The minimum wage in Spain will thus increase 50 euros monthly this year and since 2018, when the current coalition arrived in the government and the value was 735.9 euros, has increased 60.91%.
These increases are justified by the Government with the objective, established in the European Social Charter, that the minimum wage is at least 60% of the country’s average salary.
However, the calculation of the average salary is not consensual in Spain, with an expert commission, formed by academics and constituted by the government, to have concluded that for the purpose of the 60% being reached this year, the minimum wage would have to increase between 3.44% and 4.41%, according to the method chosen to make that calculation.
The Spanish government thus opted for the 4.41% increase and only got the support of the unions.
Already the employer, who were until Wednesday at the negotiation table, and in an attitude praised by both the government and the unions, proposed an increase of 3%, to 1,167 euros, accompanied by specific aids to the agriculture sector and the review of public service contracts.
According to employer, the increase in the minimum wage essentially affects small companies with little financial margin to support more costs, but also companies that provide services to public bodies (such as cleaning), so they asked for this contract review.
“Social dialogue works in our country, and we take a step forward with this good news to the workers. I want to thank the social agents for their participation, also to the employer, who this time presented concrete proposals, although it was not possible to achieve a I agree to three [partes]”Said Yolanda Diaz, in a statement to journalists.
Currently, the minimum wage in Spain is exempt from taxes on singular performance (IRS), but the government has not yet clarified if it will continue to increase this Wednesday announced.
About 2.5 million people receive the minimum wage in Spain, mostly women working in the services sector.
In the 21 European Union countries that have a minimum wage, the amounts ranged from 2023 among the 2,508.24 euros paid 12 times a year in Luxembourg and the 398.81 euros in Bulgaria.
In Portugal, the minimum wage is currently at 870 euros, paid 14 times a year.
