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CONFIRMED: Spain raises minimum wage by €15 with immediate effect

The Local Spain
The Local Spain - [email protected]
CONFIRMED: Spain raises minimum wage by €15 with immediate effect
An employee cleans the floor of the Hotel Melia Barcelona Sarria as the hotel was transformed into a medical structure to treat the least serious cases of coronavirus patients in Barcelona on July 01, 2020 on the day the last patient leaves the hotel. (Photo by Josep LAGO / AFP)

Spain’s Council of Ministers on Tuesday approved the proposed rise of the country’s minimum wage from €950 to €965, a measure which will come into effect this September. 

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

The state bulletin (BOE) confirming the government ruling states that the measure is in force from September 2021, meaning it should reflect in the payslip of Spain’s roughly 1.5 minimum wage workers at the end of the month.

The 1.6 percent salary rise is lower than the €50 bump-up initially suggested by Labour Minister Yolanda Díaz in June, although there are plans 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 are 3 percent more expensive than the previous year. 

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

If the employees receive 12 salary payments a year, their new gross monthly wages will be €1,125; that's €17.50 higher than up to now.

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

It’s still possible for people to earn less than €965 a month, but this must be if they work part-time or do temporary work.

It’s also worth noting that some sectors have set up their own base salaries, as in the case of construction, for which workers must earn at least €1,449 a month in 12 salary payments.

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

This is the case because Spain’s minimum wage sets the minimum social security contribution base for workers, but as salaried employees have their social security paid by their companies, only autónomos will feel this minor pinch. 

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

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