"2024 Minimum Wage Increase in Spain: Amount and Effective Date Explained"

Minimum Wage Increase in Spain in 2024: Details on its Amount and Effective Date A recent announcement has indicated a decision between Spain's Ministry of Labour and the country's trade unions to increase the minimum wage. The Spanish government confirmed on Friday a rise in the Interprofessional Minimum Wage (SMI), a decision set to benefit approximately 2.5 million individuals nationwide. This decision came following an agreement between the Ministry of Labour and the national trade unions. Spain's Prime Minister, Pedro Sánchez, acknowledged the announcement on platform X, stating that the SMI has risen by 54% since 2018. The increase in SMI has been noted as an effective tool in the battle against job poverty and in achieving wage equality. The General Union of Workers, one of Spain's main trade unions, expressed their support of the increase in a statement, noting how it "will ensure that no person working a full 40-hour week can earn less than 15,876 Euros (US$ 17,404) this year". How Much Will the Increase Be? According to the Ministry of Employment and Social Economy, the agreed rise brings the minimum wage to 1,134 Euros (US$ 1,241) monthly, distributed over 14 annual payments. The Secretary of State for Employment, Joaquín Pérez, clarified that the new SMI represents an increase of 54 Euros monthly (US$ 59). The authorities estimate that the rise will predominantly benefit younger workers and women. As per official data, over 65% of minimum wage earners are women. The Ministry of Labour communicated on platform X that since 2019, the SMI has risen by 398 Euros (US$ 436). The wage was previously set at 735 Euros (US$ 805) and, following six increases, it now stands at 1,134 Euros (US$ 1,241). When Will the Increase Come into Effect? Even though the wage increase was agreed upon this Friday, its formal approval will be done in the Council of Ministers. However, the implementation will be retroactive, effective from January 1st.