The Spanish government begins negotiations to raise the minimum wage

The Ministry of Labor is paving the way for an increase in the national minimum wage (SMI) by 2026. In the first meeting with the major unions, CCOO and UGT, and the Spanish employers' association CEOE, held this Tuesday afternoon, Yolanda Díaz's team sought to gauge the social partners' interest in raising the SMI by 2026. Sources from the Ministry of Labor explained that the meeting served to convey to the social partners the report from the committee of experts, which recommended a 3.1% increase without taxation and a 4.7% increase if income tax is paid. committee of experts It falls short of the unions' proposals and also deviates from the employers' proposal, which called for a 1.5% increase. However, this increase would mean that recipients of this minimum income would not be subject to income tax. Following this initial contact, the central government must make a first proposal on the minimum wage for 2026, with the aim of reaching an agreement within the framework of social dialogue. The unions expressed their openness to negotiation, while the CEOE (Spanish Confederation of Employers' Organizations) did not comment. Maximum tension

The negotiations are taking place at a time of maximum tension between employers and the Ministry of Labor. In fact, sources involved in the social dialogue assume that any agreement reached will be bipartite (government and unions), and that employers are unlikely to join. This Monday, the CEOE (Spanish Confederation of Employers' Organizations) was no longer part of the agreement to pass the new leave for bereavement and palliative care.

They haven't signed anything with the Spanish government for months. While Díaz sees "politics" on the part of employers—she has even indicated that the president of the employers' association, Antonio Garamendi, is considering retaining his position within the CEOE in the lead-up to the next elections—employers believe that it is the Ministry of Labor that has undermined the social dialogue by "interfering" in labor-related matters, but also by putting forward closed proposals. They even see it as a long-term effort to establish a "distinct profile" in relation to Podemos. However, sources within the employers' association are skeptical that the permits will be approved once they have to be processed in Congress.

Nevertheless, the CEOE (Spanish Confederation of Employers' Organizations) has already stated that it does not agree with the methodology used by the experts or the Ministry of Labor. Likewise, they do not approve of the way Yolanda Díaz wants to transpose the European directive to protect minimum wage increases in salary supplements. In the opinion of the employers, it should be done via royal decree-law and submitted to Congress, while the Ministry was exploring the option of regulations.

Imminent approval?

Within the Spanish government, no one doubts that the minimum wage will rise in 2026. Beyond wanting to continue meeting the requirement of 60% of the average net salary in Spain, the benchmark established by the European Social Charter, the announcement also represents a lifeline for the Moncloa Palace (the Prime Minister's office) at a time marked by the alleged corruption scandals and the Sánchez affair, both within the government and the PSOE (Spanish Socialist Workers' Party). Sources involved in social dialogue do not rule out the possibility that the government will try to approve the increase at the last cabinet meeting of the year, on December 23rd. The next cabinet meeting will, in principle, be on Wednesday, January 7th, 2026. This approval of the minimum wage increase would be in addition to measures such as the 2.7% revaluation of pensions and the approval of a single travel ticket for the entire trip, especially relevant at this time. This also applies to his investiture partners, who are demanding he react to the situation, and especially to Sumar, the junior partner in the coalition.