The Ministry of Labor and Social Economy has reached an agreement with the unions to increase the total amount of the Minimum Interprofessional Wage (SMI) by 5%. This measure, with retroactive effect of application from January 1, 2024, would benefit 2.5 million workers in Spain with an increase in the minimum wage. If you want to know if the increase is applicable in your specific case, we will tell you all the details of the measure in today’s article.
How much will the SMI rise in 2024?
The agreement between the Government and the unions was carried out last Friday, January 12. However, the entry into force This new increase in the minimum wage will be made official in the State official newsletter (BOE). In any case, the increase will have retroactive effects from January 1st itself. That is It will be reflected in the first salary of the year 2024.
With a minimum of 1,134 euros in 14 payments and a total of 1,323 in 12, the increase in the SMI this year represents an increase of 54 euros monthly further. Annually, the total increase reaches 756 euros per worker.
Over the last 6 years, this figure has increased, going from the 753 euros per month that was stipulated in 2018 to the 1,134 that were approved last week. In total, it represents a 54% increase since 2018.
Despite the debate generated regarding the profitability of companies if this increase in the minimum wage becomes effective, we can see that the job creation in Spainhas gone in crescendo during the past year 2023. Even in the face of adverse situations and the hard blow to the global economy caused by the COVID-19 pandemic, the resilience of the labor market has proven to be able to achieve, once again, promising figures. The positive economic outlook and creation of half a million new jobs in 2023 They would be sufficient cause to justify the reality of the economic impact of labor in our country. Furthermore, factors such as rise in food and fuel prices Due to the geopolitical tensions caused by the War in Ukraine, they support wage increases in order to minimize the economic precariousness of the average worker.
Who is affected by the rise in the SMI?
This increase in the SMI would affect 2.5 million workers. According to data published by La Moncloa, the most benefited for this rise they would be women and youth. Which also shows which ranges of workers are the most affected by job insecurity.
This measure is intended to reduce the gender gap and inequality in the conditions of employment. Furthermore, it is intended to “complete the objective of place the SMI at 60% of the average salary, thus complying with the provisions of the European Committee of Social Rights and the commitment of the Executive’s legislature,” as dictated in the La Moncloa press release. Another of the intentions pursued with this increase is to level the playing field with the rest of Europe. Although, although this increase represents a step in the right direction, minimum salaries such as those in Germany (1,997 euros), France (1,747 euros) or the United Kingdom (1,621 euros) continue to leave Spain in the same position it occupied in 2023.