The Council of Ministers approved this Tuesday the increase in the interprofessional minimum wage (SMI) by 5%, up to 1,134 gross euros per month in 14 payments. Another step in the rise of the reference that has left behind a clash between Labor and employers, which has distanced itself from the agreement with the unions, who are asking for an even greater increase. Its recipients will not pay personal income tax as the exempt minimum is raised to the new amount of the SMI, 15,876 euros gross per year.
With the decision, the minimum rises to 54 euros per pay and consolidates an increase of 54% since 2018, when it stood at 735.9 euros. Since then “there has been a systematic revaluation,” defended the second vice president and Minister of Labor, Yolanda Díaz. “Inequality with the European salary averages is narrowing,” she added despite recognizing that we are still far from those levels. Specifically, the distance from the European salary average is 19 points. “A collective effort must be made to continue increasing salaries, not just the SMI,” the minister continued.
It is estimated that 2.5 million workers will benefit from the revision of the SMI, which is applied retroactively from January 1, 2024. Workers in commerce and hospitality, more than half a million, and those in agriculture, where it affects 46%, they are the sectors that benefit the most. “It is the best tool against working poverty and inequality,” said Díaz.
To this group of beneficiaries we must add workers whose agreements are referenced to the SMI. The Government also emphasizes the impact among the group of women, accounting for two out of every three beneficiaries, specified the head of Labor.
Looking to the future, Díaz said that the SMI “will continue to rise”, as he also commits to reducing working hours without a salary reduction in the coming years.
