After a month of discussion between the Government of Pedro Sánchez and the CC.OO and UGT unions, the agreement has been reached. The Minimum Interprofessional Wage (SMI) will rise by 8%up to 1,080 euros gross per month in 14 payments so that workers do not lose purchasing power.
The President of the Government has highlighted that Spain is the second OECD country that has raised the SMI the most in the last five years and has indicated that the rise “will especially improve the lives of women and young people.”
“Our fight to improve the conditions of workers and to achieve a fairer distribution of business profits has only just begun,” he stated before the Upper House.
Increase in the Minimum Interprofessional Wage
The Minimum Interprofessional Salary will go from 1,000 euros gross per month in 14 payments to 1,080 euros, which is equivalent to 15,120 euros per year. In relative terms, the increase is 8%. Since 2018, the SMI has grown by 344 euros per month. Unions estimate that the increase will benefit 2.5 million workers.
It should be noted that the increase in the SMI will also affect unemployment benefits. The reason is that in order to collect this aid, the applicant cannot have an income greater than 75% of the SMI. Therefore, by raising the SMI, that 75% goes from being 750 euros to being 810 euros.
When will it go into effect?
As reported this week by the general secretary of CC OO, Unai Sordo, the increase in the SMI will go through the Council of Ministers in about two weeksso we will have to wait for it to be reflected in the payroll.
Nevertheless, workers do not have to worry because the increase is retroactive to January. Therefore, the increase that they have not received in the January payroll will be compensated in February.
With respect to profile of worker who will benefit from this increaseUnai Sordo points out that “we are talking about a woman between the ages of 16 and 34, with a temporary contract and who works in the agri-food sector or in services”.
By sectors, almost half of the farm workers receive the SMI (46.7%). Meanwhile, the incidence is 14.5% in services, 7.6% in industry and 3.8% in construction.
In the case of domestic employment, in 2022 the minimum wage per hour was stipulated at 7.82 euros, which includes the proportional part of Sundays and holidays, as well as vacations and extraordinary payments. After the reform, 8% of the increase in the SMI will be applied, and the minimum wage per hour will be 8.4 euros.
