[Spain] Minimum wage increased by €15 with immediate effect

On September 28 Spain’s Council of Ministers approved the proposed rise of the country’s minimum wage from €950 to €965, a measure which will come into immediate effect, The Local reports.

Following an agreement between the country’s Work Affairs Ministry and national workers’ unions, Spain’s salario mínimo interprofesional (SMI) will officially rise by €15. 

The state bulletin (BOE) that confirmed the government ruling said the measure is in force from September 2021, meaning it should by now be reflected in the end of month payslips of Spain’s roughly 1.5 million minimum wage workers.

The 1.6 per cent salary rise is lower than the €50 hike initially suggested by Labour Minister Yolanda Díaz in June, although plans have reportedly been made to continue increasing the SMI over the next two years.

Spain’s consumer price index, which measures the cost of living in the country, has calculated living costs to be 3 per cent more expensive than the previous year. 

The new €965 figure is a gross amount (pre-tax) to be paid in 14 wages for full-time minimum wages.

If an employee receives 12 salary payments a year, their new gross monthly wages will be €1,125; €17.50 higher than previously.

In other words, Spain’s lowest full-time minimum earners must now be paid at least €13,510 gross a year. 

It continues to be possible for people to earn less than €965 a month but only if they work part-time or do temporary work.

Additionally, some sectors such as construction have set up their own base salaries for which workers must earn at least €1,449 a month over 12 salary payments.

The rise in minimum wages in Spain will, unfortunately, lead to an increase of social security contributions for the country’s self-employed workers, “between €3 and €12” according to national autónomo association ATA.

The reason for this is that Spain’s minimum wage sets the minimum social security contribution base for workers but because salaried employees have their social security paid by their companies, only autónomos will feel the difference. 

The revision of these social security contributions is yet to be confirmed by Spain’s Seguridad Social department.

Source: The Local

(Link via original reporting)

On September 28 Spain’s Council of Ministers approved the proposed rise of the country’s minimum wage from €950 to €965, a measure which will come into immediate effect, The Local reports.

Following an agreement between the country’s Work Affairs Ministry and national workers’ unions, Spain’s salario mínimo interprofesional (SMI) will officially rise by €15. 

The state bulletin (BOE) that confirmed the government ruling said the measure is in force from September 2021, meaning it should by now be reflected in the end of month payslips of Spain’s roughly 1.5 million minimum wage workers.

The 1.6 per cent salary rise is lower than the €50 hike initially suggested by Labour Minister Yolanda Díaz in June, although plans have reportedly been made to continue increasing the SMI over the next two years.

Spain’s consumer price index, which measures the cost of living in the country, has calculated living costs to be 3 per cent more expensive than the previous year. 

The new €965 figure is a gross amount (pre-tax) to be paid in 14 wages for full-time minimum wages.

If an employee receives 12 salary payments a year, their new gross monthly wages will be €1,125; €17.50 higher than previously.

In other words, Spain’s lowest full-time minimum earners must now be paid at least €13,510 gross a year. 

It continues to be possible for people to earn less than €965 a month but only if they work part-time or do temporary work.

Additionally, some sectors such as construction have set up their own base salaries for which workers must earn at least €1,449 a month over 12 salary payments.

The rise in minimum wages in Spain will, unfortunately, lead to an increase of social security contributions for the country’s self-employed workers, “between €3 and €12” according to national autónomo association ATA.

The reason for this is that Spain’s minimum wage sets the minimum social security contribution base for workers but because salaried employees have their social security paid by their companies, only autónomos will feel the difference. 

The revision of these social security contributions is yet to be confirmed by Spain’s Seguridad Social department.

Source: The Local

(Link via original reporting)