Spanish trade unions call for minimum wage increase of 89 euros per month to 1,273 euros
The UGT and CC OO unions state that this 7.5% increase should have the personal income tax applied and demand that the increase is not absorbed by supplements such as hazard or night-shift pay
With a little over a month left before the end of the year, trade unions UGT and CC OO have already laid out the increase in the minimum wage (SMI) that they will defend for 2026: an 89-euro monthly rise, which would set it at 1,273 euros gross per month, paid in 14 instalments or a total of 17,822 euros gross per year. They also insist that this increase cannot be offset or absorbed by certain wage supplements, such as night-shift bonuses, hazard pay, language supplements and others.
This was announced by both unions in a joint press conference on Monday, 24 November. The union representatives said that they are demanding a higher increase compared to other years and much higher than inflation, 7.5%, because they believe this income bracket should now be taxed under Spain's personal income tax (IRPF) to avoid discrimination between workers. They, however, stated that the cost should not fall on the lowest-paid workers. In their view, it would not be fair that someone earning 1,273 euros per month pays no income tax, while another person earning 1,300 euros does.
"We maintain that minimum wages must be dignified and meet the needs of workers and their families to prevent poverty. If they meet these requirements, of course, they must contribute to the public treasury like other salaries do," UGT deputy secretary for trade union policy Fernando Luján said. He added that, up until now, they had supported the "anomaly" of the minimum wage being tax-free because "things were so tight financially that any reduction in pay risked pushing people into poverty".
Conflict in the government
The unions are stepping forward to avoid another conflict like the one that split the government in two after this year's increase to 1,184 euros. After that rise was approved, a political dispute broke out between two deputy prime ministers: Yolanda Díaz publicly clashed with María Jesús Montero over Montero's decision to require, for the first time ever, that people earning the minimum wage be obliged to pay income tax. After weeks of public and media tension, the labour minister (Díaz) ultimately prevailed following mediation by Prime Minister Pedro Sánchez, and Montero had to reverse her decision.
In order to avoid another clash, Díaz has asked the committee of experts to draw up two recommendations for an increase in the minimum wage for 2026: one, which incorporates the possible taxation on income; and another, which excludes the payment of this tax, although the current position of the trade unions is that IRPF should apply to next year's SMI.
According to the unions, the proposed increase is "modest" and "moderate", since the net increase would be 2.7% (32 euros more than now, to 1,216 euros per month) and the remaining 4.8% would go towards the Spanish tax system.
This is not the only demand of the trade unions: this year, in line with what the minister of labour advocates, they consider it "essential" to modify the royal decree to "limit" compensation and absorption in companies by other bonuses and ensure that the increase is transferred in full to workers' real wages. According to them, this change, which employers strongly oppose, does not need to be approved by congress.
