[Spain] Minimum wage extension and retroactive effects

In Spain, the Government has opted to extend the current minimum wage rate, Economía Finanzas reports.

The national minimum wage, set at €1,184 per month in 14 payments, was extended by royal decree while a new agreement is being finalised. 

According to the government, the extension won’t prevent the approval of a new reference for 2026, but will serve to avoid legal loopholes and ensure the continuity of contribution bases.

Once the new royal decree on the increase is approved, the increase will reportedly be applied with retroactive effect from January 1, 2026. Meaning companies will have to adjust payrolls and pay the differences in the first possible month, usually in the February payroll, including arrears since the beginning of the year.

In the case of self-employed people, contributions will continue to be governed by the contribution tables in force in 2025 until the new amount comes into effect. However, the maximum contribution base for some brackets will reportedly be adjusted to the new upper limit. 

These actions are without prejudice to subsequent updates once the final increase in the minimum wage is known.

Source: Economía Finanzas

In Spain, the Government has opted to extend the current minimum wage rate, Economía Finanzas reports.

The national minimum wage, set at €1,184 per month in 14 payments, was extended by royal decree while a new agreement is being finalised. 

According to the government, the extension won’t prevent the approval of a new reference for 2026, but will serve to avoid legal loopholes and ensure the continuity of contribution bases.

Once the new royal decree on the increase is approved, the increase will reportedly be applied with retroactive effect from January 1, 2026. Meaning companies will have to adjust payrolls and pay the differences in the first possible month, usually in the February payroll, including arrears since the beginning of the year.

In the case of self-employed people, contributions will continue to be governed by the contribution tables in force in 2025 until the new amount comes into effect. However, the maximum contribution base for some brackets will reportedly be adjusted to the new upper limit. 

These actions are without prejudice to subsequent updates once the final increase in the minimum wage is known.

Source: Economía Finanzas