# Spain plans new minimum wage increase 26 October 2026 at 18:09 > The Spanish Government aims to raise the minimum wage by up to 5% while introducing tax deductions to protect workers' net income. The **Spanish Government**, represented by spokesperson **Elma Saiz**, intends to approve a new increase to the **Minimum Interprofessional Wage** (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 **Ministry of Finance** is planning a tax deduction. This measure requires approval from the Permanent Deputation of the **Congress of Deputies** 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. [#Spain]() #MinimumWage #SMI #TaxReform [#SpanishEconomy]() ## Related news ## [Monzo launches personal and business accounts in Spain]() 28 October 2026 at 17:44 ## [Court orders list of 163,020 affected voters]() 28 October 2026 at 16:43 ## [Colau proposes 10% tax on high-rent properties]() 28 October 2026 at 10:54 ## [Court rejects Ceuta's urgent migrant return bid]() 27 October 2026 at 12:50 ## [Spain to discuss 2027 minimum wage increase]() 7 October 2026 at 16:48