Labor

The employers' association proposes raising the minimum wage by 1.5%, to €1,202

The unions demanded a 7.5% increase in the minimum wage from the Spanish government.

BarcelonaThe employers' associations CEOE and Cepyme agreed on Tuesday to propose a 1.5% increase in the national minimum wage (SMI) by 2026, which would bring it to €1,202 gross per month, paid in 14 monthly installments (€16,824 gross annually). The organizations stated that this increase is in line with the planned raise for public sector employees next year and coincides "with the objectives of the European minimum wage directive." A few weeks ago The CCOO and UGT unions proposed raising the minimum wage by 7.5%....up to €1,273 gross per month, and to include income tax (IRPF) for the first time. Meanwhile, the committee of experts convened by the Ministry of Labor has not yet submitted its proposal. According to a statement released by employers, data from the Active Population Survey (EPA) shows that the minimum wage (SMI) has already exceeded 60% of the average net salary used by the Ministry, headed by Yolanda Díaz, as the criterion for setting it. "CEOE and Cepyme use the EPA as a reference because the Wage Structure Survey (EES), which serves as the basis for calculating the average salary for the group of experts advising the Ministry of Labor, does not include wages in agriculture, livestock farming, fishing, or domestic service, among others, which creates... "These sectors are heavily reliant on labor and concentrate a large part of the minimum wage, so the average salary resulting from the Wage Structure Survey is higher than the actual figure, and the resulting minimum wage is oversized," the employers' associations argued. In their view, the latest minimum wage increases are "penalizing employment" in these sectors. According to their calculations, using the EPA (Active Population Survey) data for 2025 as a reference, the minimum wage would be €15,760 gross per year, €816 less per year. "In other words, the minimum wage is currently 4.9% higher than it should be," the employers' associations CEOE and Cepyme stated. In fact, they believe the minimum wage should not be increased next year, but they propose a 1.5% increase because it aligns with the planned increase for civil servants and the objectives of the European directive for setting the minimum wage. "Precisely to respect collective bargaining, we are conditioning this 1.5% increase on..." "Compliance with the absorption and compensation rules of the Workers' Statute," they say.

Union demand

In this context, the general secretary of the UGT union, Pepe Álvarez, took advantage of the tribute to Pablo Iglesias Posse, founder of the union and the PSOE party, to demand that the Spanish government be "ambitious" with a minimum wage increase in 2026. Speaking directly to Pedro Sánchez, the union leader asked him to ensure that the minimum wage would be "60% of the average salary in Spain." The 7.5% increase proposed by the unions would raise the current minimum wage by 89 euros, which stands at 1,184 euros gross per month, paid in 14 installments. According to the unions, despite being subject to income tax, with this increase, those earning the minimum wage would still receive the equivalent of 60% of the average net salary, the benchmark established by the European Social Charter and the commitment of the Spanish government.