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

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. 

CONFIRMED: Spain raises minimum wage by €15 with immediate effect
Photo: Josep LAGO / AFP

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. 

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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ENERGY

How to change the title holder of utility bills in Spain

When you move into a new property in Spain you will need to change the account or contract holder over, so that any future water, electricity or gas bills will be in your name. It's not as easy as you may think; here's how you go about it.

How to change the title holder of utility bills in Spain

Changing the name on your utility bills and the payment details should in theory be relatively straightforward, however you may come up against some common problems which can make the change pretty complicated.

Firstly, you will need to find out which energy companies have been contracted for your property.

You can do this by asking the previous owner themselves, contacting your landlord if you’re renting or asking your estate agent to find out for you.

When it comes to water, this should be provided by your local council or city, so you won’t need to contact the previous occupant for this one. 

How do I change the title over?

When you first move in, remember to note down the numbers on the gas, electricity and water meters, so you can give these to the utility companies and they can record how much you should owe, instead of having to pay for the previous occupant’s consumption as well.

Next, you will then need to contact the energy company supplying your property or water provider and ask for a cambio de titular a nombre del arrendatario o comprador (ask for a change of ownership in the name of the renter or buyer).

The process should be completely free for electricity and gas, but in some cities, you may need to pay a deposit for changing the title of the water bill, which you should get back when you vacate the property. The deposit can be anywhere between €50 and €100.

Contacting the energy company by phone may be the best way to make sure everything is done correctly, but some companies also have online forms where you can request a title change. When it comes to water, most cities will have water offices you can visit or specific e-mail addresses if you can’t contact them over the phone. 

There are a few pieces of information you’ll need to have on hand before you contact the company. These are:

  • The full name of the previous person who had the bills in their name
  • Your NIE / DNI
  • The address of the property
  • The date you moved in
  • The CUPS code (not needed for water)
  • Your padrón certificate (for water only)
  • A copy of the deeds of the property or rental contract
  • Your bank details

With all this information, they should be able to change the name over on the account relatively quickly, so that any future energy bills will go directly to you.

At this time, you can also change your tariff or amount of energy contracted to suit your individual needs.

How do I find the CUPS code?

The CUPS code or Código Unificado del Punto de Suministro (Universal Supply Point Code) is a number that identifies each individual property that receives electricity or gas. The number doesn’t change, so you could ask the previous occupant for this as it will be written on their energy bills.

Alternatively, if this isn’t possible you can contact your energy distributor – these are assigned by area and stay the same. By giving them your name, address and ID number such as NIE, they will be able to give you the CUPS code associated with your property.

What if I want to change to a new energy company?

If you’d prefer not to contract the energy company that the previous owner had, you can also choose to go with a new one. In this case, you will still need all of the same information and numbers as above, but you will contact the energy provider of your choice and the type of tariff you want to pay.

How long will it take to change the name over?

It can take between 1 and 20 days for the bills to be changed over into your name. The previous occupant will receive their final bill and then you will receive the new one from the date you moved in.

What are some of the problems I might come up against?

The most common problem is when the previous occupant is not up to date on paying their bills and has some outstanding debt. In this case, if you try to change the title over into your name, you will also be inheriting the pervious owner’s debt.

In this case, you will have to get the previous occupant to pay their outstanding bill before you can change it over into your name. If you have problems getting them to pay their bill, then you can show proof of the date you moved in by sending in a copy of your deeds or rental contract. This should in theory allow for the transfer of ownership without having to take on the debt, however it can be tricky process, often calling the energy company multiple times and waiting for verification of the proof.

What if the energy services have been cut off?

In the case that the property has been uninhabited for some time, the previous owners may have deactivated or cut off the utilities. If this is the case, then you will need to call the energy providers to activate them again. This will typically involve paying several fees to be able to get them up and running. The amount you pay will depend on the energy distributor and where the property is based in Spain. 

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