Spain poised for another boost in minimum wage
The minimum pay packet in Spain should go up by around 5%
As the Spanish government gears up for a new round of negotiations, the country's minimum wage is set to receive a welcome boost. The Minister of Labour, Yolanda Díaz, has announced that talks will begin on November 26 to determine the new amount of the Minimum Interprofessional Wage (SMI) for 2025.
With a proposed increase of around 5%, the SMI is expected to rise to 1,190.70 euros per month in 14 payments, translating to an additional 56.70 euros each month for low-income earners.
This move is part of the government's ambitious plan to bring the minimum wage in line with 60% of the average salary in Spain by the end of the current legislature.
The proposed 5% increase for 2025 follows a similar pattern to this year, when the SMI rose by 5% to 1,134 euros gross per month in January 2024. In real terms, employees saw 54 euros more per month in their paychecks (again, over 14 payments), bringing the annual minimum wage up to 15,876 euros.
The current minimum wage already represents 58.91% of the average salary, which is 26,948.97 euros per year. With the proposed increase, the SMI would rise to 61.85% of the gross annual wage, bringing Spain closer to its goal. However, it's worth noting that the average salary may also increase in the meantime, which could affect the final percentage.
If the proposed 5% increase does go through in January 2025, low-income earners will be looking at a nice salary bump, bringing their gross annual income up to 16,669.80 euros.
According to the latest data from Eurostat, the minimum wage in Spain is ranked 17th among EU countries, with countries like Luxembourg, Ireland, the Netherlands and Germany having significantly higher minimum wages, above 2,000 euros per month.
Also of interest: Salary gap in Spain widens despite minimum wage increases
Image: Freepik
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