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ARCHIVED - Spain increases the minimum wage to 965 euros per month
The minimum salary in Spain will go up by 15 euros but the move has been criticised by employers
The Ministry of Labour and the UGT and CCOO unions in Spain have agreed on Thursday September 16 to raise the minimum inter-professional wage (SMI) for the remainder of 2021 to 965 euros per month, to take effect retroactively from September 1.
In a joint statement, the Government and the unions committed to meeting the objective of placing the SMI at 60% of the average salary, through its progressive review in 2022 and 2023, but declined to provide any further details.
The 15 euros per month increase has been widely criticised by employers, with the president of the CEOE, Antonio Garamendi, insisting that raising the SMI will result in “less employment” as well as “more underground economy”. He also expressed his concern about the lack of clarity around further hikes in the coming years.
While the unions are on board, they have called for more specificity about the 2022 and 2023 targets and have demanded that a working group be set up as soon as possible to ensure that the SMI reaches 1,000 euros in January next year.
In January 2020, President Pedro Sanchez decided to freeze the minimum wage at 950 euros per month in an attempt to stimulate the labour market, so the new increase marks a rise of 1.6%.
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