Minimum wage rises by 5% after agreement between Spanish government and unions

The minimum wage (SMI) in Spain will increase by 5% this year after the Spanish government and unions reached an agreement on Friday.

This amounts to an increase of €54, from €1,080 to €1,134 per month in 14 payments per year. 

Most workers in Spain receive 14 rather than 12 paychecks a year, with extra payments in June and December. 

The new minimum wage works out at €15,876 per year, or €1,323 per month when divided into 12 equal payments.

The increase will be applied retroactively from January 1, 2024. 

Unions on board but not employers' organizations 

The Secretary of State for Labor, Joaquín Pérez, said the increase will benefit "more than two and a half million workers," especially the most vulnerable, women and young people, as the increase is above the latest inflation figures. 

The increase was agreed with the support of trade unions but without employers' organizations.  

"The government has made a great effort to try to reach an agreement with all the trade unions and employers' organizations," Pérez said after a two-hour meeting on Friday morning.  

He regretted that the CEOE and Cepyme organizations, involved in the talks, had not shown flexibility in seeking an alternative figure or in giving up some of their demands. 

PIMEC, the Catalan association of small- and medium-sized businesses, said it was "very negative" that the deal was reached without employers and demanded again that small businesses are given their own voice in dialogue with the Spanish government on the issue.