PROPERTY SEARCH
PROPERTY SEARCH
ARCHIVED - Pay Day: Spanish minimum wage looks set for a larger increase next year
The average salary in Spain has grown more than expected while inflation continues to hit low income earners hardest
Having promised to up the Spanish minimum wage for 2023, the government is in detailed talks with business representatives and employment unions in a bid to come up with a fair figure, and it seems this may now turn out to be more than workers expected.
The Ministry of Labour initially agreed that minimum pay next year would be set at the equivalent of 60% of the average salary in Spain, and at the time the experts agreed on a monthly figure of between 1,011 and 1,049 euros. However, the average Spanish pay packet has actually increased more than expected and this, together with the crippling burden inflation is putting on low income earners, has prompted the Labour department to consider hiking the minimum wage up a bit further.
It’s a delicate operation though, and businesses that are just starting to get back on their feet after the coronavirus pandemic are also being hit by rising raw material costs. The Bank of Spain has also previously warned that increasing wages to mitigate inflation will lead to a vicious cycle where the poor just get poorer.
In any case, Minister Yolanda Díaz plans to meet with her committee of experts this Friday September 2 to discuss the matter, and the final decision is expected in about a month. However, Ms Díaz herself has repeatedly indicated that she’s inclined to increase the minimum wage above the 1,049 euro benchmark.
The Minister is unlikely to meet with employers and unions again until after the experts have come up with a figure, but several staff reps have already called for the change to be made as soon as possible because “inflation is doing a lot of damage to people with the lowest salaries”.
On the other side of the table, vice president of the CEOE employers’ association Lorenzo Amor, has downplayed the urgency, insisting that any changes to pay rates won’t be implemented until next January at the earliest.
Image: Pixabay
Sign up for the Spanish News Today Editors Roundup Weekly Bulletin and get an email with all the week’s news straight to your inbox
Special offer: Subscribe now for 25% off (36.95 euros for 48 Bulletins)
OR
you can sign up to our FREE weekly roundup!
Read some of our recent bulletins:
25% Discount Special Offer subscription:
36.95€ for 48 Editor’s Weekly News Roundup bulletins!
Please CLICK THE BUTTON to subscribe.
(List price 3 months 12 Bulletins)
Read more stories from around Spain:
Contact Spanish News Today: Editorial 966 260 896 /
Office 968 018 268
