Spain raises minimum salary to €1,000 as of Jan 1 after agreement with unions

The Spanish government has raised the minimum salary in the country to €1,000 per month in 14 installments throughout the year and backdated as of January 1, 2022. 

This means an increase of €35 per month. The annual salary currently is €13,510 and with the increase, it grows to €14,000.

Labor minister Yolanda Díaz sealed a deal on Wednesday with unions UGT and CCOO, as business associations rejected the plans.

The conservative People's Party left power in 2018 with a minimum salary of €735. Thus, in four years, the amount has increased by almost €300 since then. 

During the signature of the deal with unions, Díaz said that the measure will be "very positive for the country and the economy."

She also said she reached an agreement only with the workers' organizations, but not with businesses – in any case, the Spanish government had no obligation to find consensus in order to change the minimum salary. 

The leader of UGT union, Unai Sordo, said during the same event that 1.8 million Spaniards will see their salaries grow, 11% of the total. 

Especially, it will affect women (14%) over men (8.5%), "which will contribute to reduce the gender pay gap." 

The measure will also impact above all on young people, because 30% of those between 16 and 24 are at the moment earning the legal minimum salary, as well as 14.7% of those in the 25-34 age range. 

Around 40% of employees in agriculture-related jobs will also see their payslips rise, as well as 11% of people working in the service sector. 

"It is not true that the minimum salary growth destroys jobs," said Catalonia's Josep Maria Álvarez, the leader of the other union signing the deal. 

On the other hand, businesses associations did not agree with the raise. However, despite the agreement between the government and the labor unions, PIMEC urged that the minimum wage increase goes hand-to-hand with an improvement regarding productivity levels, especially with the economic uncertainty there is. 

Catalonia wants a higher minimum salary

In Catalonia, where the poverty line is set at €915 per month, there have been calls for a higher minimum wage of €1,239 throughout the territory. Yet, the only administration that has the authority to set a minimum wage is the Spanish government.