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Yolanda Díaz, Minister of Labor and Social Economy of Spain
Spanish Minister of Labor questions bosses’ arguments about raising the minimum wage and renews tension with businesspeople.
The Deputy Prime Minister and Minister of Labor of Spain, Yolanda Díaz, once again harshly criticized bosses’ criticism of the recent increase in the Interprofessional Minimum Wage (SMI).
And it launched a challenge to Spanish companies regarding their ability to assume salary costs.
After the Council of Ministers approved an increase in 3,1 % in the SMI for 2026 — which sets the minimum wage at 1,221 euros gross — Díaz stated that “If a small company cannot pay an employee 37 euros more per month, it is not a solid company.”
The declaration comes amid an environment of strong disagreement between the Government and business organizations, which did not sign the agreement on the new minimum wage: they consider that the increase represents a significant additional burden for small and medium-sized businesses.
Díaz rejects this narrative, arguing that the discourse of some employer representations “no It’s real” and that the new SMI continues to be a modest salary for many workers. He also emphasized that several businesspeople have already told him that they will be able to apply the salary increase to their staff.
The minister also attacked the tax discrepancy between large and small companies, asking small and medium-sized companies to demand more balanced tax treatment in relation to large ones, cited by .
However, the controversy continued: some critics remember that the real cost for employers is more than 37 euros per month mentioned by the Government, due to the associated increase in Social Security contributions.
The rhetorical battle between the executive and employers intensifies a deep division over salary policy and the role of the State in the labor market, with businesspeople arguing that increasing the SMI without consensus could make life difficult for small and medium-sized companies, while the Government insists on the need to improve income and redistribute wealth in the context of economic growth.
