Minimum wage in Spain set to rise by between 39 to 50 euros a month

The Spanish government will raise the minimum wage (SMI) this year by between 3.4% and 4.4%. This is the range of increase recommended by the committee of experts. The Second Deputy PM, Yolanda Díaz, has stated on several occasions that she will abide by the decision of this group of 'wise men' so, barring any surprises, the increase that she will propose to all Cabinet ministers will range from a minimum of 39 euros to a maximum of 50 euros per month. Therefore, the lowest legal income in Spain for full-time employment will be between 1,173 euros and 1,184 euros per month (14 payments per annum), compared to the current 1,134 euros, according to the report drawn up by the advisory committee to which SUR has had access.

However, for the new minimum wage to see the light of day, there are still several steps to be taken. Once the Ministry of Labour has officially presented the conclusions of this committee of experts, which has spent weeks analysing what the necessary increase would be to maintain the SMI at 60% of the average wage (as required by the European Social Charter), Díaz will swiftly convene, in the next few days, meetings with the trade unions and employers to hammer out an agreement that can then be taken to the Cabinet. Then for it to be approved and backdated before the end of the month, so that it can be reflected in the first pay cheque of the year, thereby avoiding any bureaucratic hassles.

The proposal that the unions will bring to the table will be an increase of between 5% and 6%. However, secretary-general of the UGT, Pepe Álvarez, warned on Wednesday that they will not accept a rise of less than 4%, which is why the ministry will opt for the higher range to try to get a deal from the unions, as government sources commented to SUR.

The employers' association, on the other hand, has already spoken out against any new increase after the lowest salary in Spain has shot up by more than 50% in just five years since PM Pedro Sánchez's arrival at La Moncloa in 2018, so a 'No' is a given as coming from the CEOE (Spain's leading employers' association), more so in the current atmosphere of hostility between the CEOE and Yolanda Díaz's ministry.

"I think there is room to reach an agreement, as soon as the committee of experts issues the proposal, we are going to convene talks", said Díaz on Wednesday in statements to Telecinco. However, in addition to these two interested parties, the minister will have to reach a consensus on the SMI increase with the Minister for the Economy, Carlos Cuerpo, at a time when both are in the midst of a battle to reduce the working day to 37.5 hours.

However, last week Cuerpo was in favour of raising the minimum wage by around 4%, which is the average increase in wages per agreement and "in line with what is happening in the rest of the economy." Díaz asked Cuerpo to "respect" the committee of experts that advises the government and reminded Cuerpor that he himself was part of this committee by appointment of the then First Deputy PM Nadia Calviño. "Then he was opposed, as he is today, to a rise in line with what is happening in our country. And I say a rise in line with what is happening in our country, because you, any of you, go shopping and see the prices we pay for food", said Díaz.

The likely rise of around 4% is more "moderate" than that of the last two years - as the experts admit - but considerably higher than inflation, which closed the year at 2.8%, and will allow the average net wage to remain at 60%. However, the committee is "concerned" that the minimum wages per agreement "will cease to be relevant" as many are now below the official rate.