The minimum wage in Spain increases to 1,000 euros per month

Labour Minister Yolanda Díaz and union leaders Unai Sordo and Pepe Álvarez have signed an agreement to increase the minimum wage in Spain to 1,000 per month.

Previously the minimum wage was 965 euros per month and the agreement will see workers receive the increase retroactively from the beginning of this year.

Employers representatives are however unhappy with the new agreement arguing that it is an economically unfavourable time to introduce the increase.

They also accused Díaz of political opportunism by announcing the new deal during a regional election campaign in Castilla y León.

The hike of 35 euros per month comes after an increase of 15 euros introduced in September 2021 raising the minimum wage from 950 euros to 965 euros per month. Díaz said that when the PSOE came to power in 2018 the minimum wage was 735 euros per month and that the government is committed to raising it to between 1,040 and 1,065 per month by 2023.

Increasing the minimum wage "has been very positive for our country and also for our country's economy. This is the best tool to combat working poverty. It has a primary and direct impact on the most vulnerable sectors such as young people and women," she said on 9 February.

Employers maintain the increase is "unaffordable for especially vulnerable sectors" such as agriculture and the hospitality industry which "have been enduring cost overruns of all kinds for years.”