Tom Ewart Smith
THE Spanish government has officially raised the minimum wage (SMI) for 2025, following an agreement with trade unions.
The new SMI will be set at €1,184 per month, reflecting an increase of €50 compared to the previous year.
This represents a 4.41% rise, bringing the minimum annual gross salary to €16,576.
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This increase follows a trend of rising wages and social contributions in Spain.
The update comes after a previous 5% increase in 2024, which was applied retroactively from January 1.
The Spanish government aims to ensure that the minimum wage remains 60% of the average national salary, aligning with the European Social Charter.
Despite the agreement with trade unions, Spanish employers have distanced themselves from the deal, arguing that the increase is excessive.
Employers had proposed a more modest 3.4% rise, while unions initially pushed for a 5.8% increase before compromising on the final figure.
The Ministry of Labour recommended an increase of between 3.44% and 4.41%, with the final decision favouring the higher end of the range.
This wage adjustment comes alongside other economic measures, such as reductions in working hours and VAT tax hikes, impacting workers across Spain.
Employees earning the lowest wages will see the increase applied retroactively, ensuring that they benefit from the changes immediately.
In contrast, the highest-income workers will face increased contributions with the implementation of the new ‘solidarity’ fee.
