Minimum Wage Increase in Spain

Minimum Wage Increase in Spain

On Tuesday 28th September 2021, Spain’s minimum wage (salario mínimo interprofesional (SMI)) rose by €15. The rise came after Spain’s Prime Minister, Pedro Sánchez, said there would be “no economic recovery if it does not reach the pockets of all Spaniards”.

The rise, approved by the Government of Spain, the Workers' Commissions and General Union of Workers, came into effect immediately and saw the minimum wage increase from €950 to €965. Its instant implementation meant that it was backdated from 1st September and this should have been reflected on the payslip of Spain’s minimum wage workers at the end of September.

Despite the rise of 1.6% being lower than initially suggested back in June 2021, there are plans to gradually increase the minimum wage over the next two years. The new €965 figure is a gross amount (pre-tax) and is paid in 14 instalments. Should a worker receive 12 salary payments per year, their new gross monthly wages will be €1,125 (€17.50 higher than before). Due to this, the country’s lowest full-time minimum wage earners must be paid at least €13,510 (gross) a year.

Only those who work part-time or temporarily can earn less than the €965 a month.

For Spain’s self-employed workers, unfortunately the rise in minimum wage will result in the increase of social security contributions. According to Spain’s National Federation of Self-Employed Workers Associations (ATA), the increase is “between €3 and €12”. The reason behind this is that Spain’s minimum wage sets the minimum social security contribution base for workers, however as salaried workers have their social security paid by their employers, only the self-employed will experience this increase.

Please note, Spain’s National Institute of Social Security (Seguridad Social) is yet to confirm the revision of these contributions.

Learn more about Spain's minimum wage requirements, along with important tax and payroll information, in our Global Insight Guide to Spain.

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