Spain plans new minimum wage increase

The Spanish Government aims to raise the minimum wage by up to 5% while introducing tax deductions to protect workers' net income.

The , represented by spokesperson , intends to approve a new increase to the (SMI) before the upcoming elections. Officials are considering a 5% rise, though labour unions are demanding a 7% hike.

To prevent this increase from being eroded by IRPF taxation, the is planning a tax deduction. This measure requires approval from the Permanent Deputation of the to ensure the new wage floor remains tax-exempt.

The current SMI stands at 17,094 gross euros annually, up from 15,876 euros in 2024. Under existing rules, workers must file tax returns to recover withholdings, but the new mechanism aims to adjust how these payments are handled following the wage rise.


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