The Treasury already anticipates that those receiving the minimum wage will continue to not pay income tax.

MadridNegotiations for a new increase in the minimum interprofessional wage (SMI) will begin without internal disagreements within the Spanish government, especially regarding the affected ministries: Economy, Finance and Labor. portfolios that have previously been involved in more than one clash regarding the measure

On the one hand, the Ministry of Economy has endorsed the report by the SMI expert committee published this Friday, although it initially issued a dissenting opinion related to the methodology used. "We endorse their [experts'] conclusions," stated the Minister of Economy, Carlos Cuerpo, in statements to the media this Friday from Brussels. "The government's position is unanimous," he reiterated. The Minister of Labor, Yolanda Díaz, echoed this sentiment: "The Spanish government is aligned with this report. It is the best news we can give our country. Nothing will distract me," she added, referring to the cases. legal proceedings that are besieging Pedro Sánchez and the Spanish government

On the other hand, the Treasury already anticipates that those receiving the minimum wage will continue to be exempt from income tax. "We are open to analyzing the update of the current income tax deduction to adapt it to the minimum wage increase," sources from the ministry headed by María Jesús Montero indicate, noting that the objective is for the minimum wage "not to fall below 60% of the average net salary," as stipulated by the European Social Charter. Depending on their decision, the Ministry of Labor, under the leadership of Yolanda Díaz, will propose one of the two figures suggested by experts at the social dialogue table. Thus, Díaz's team remains noncommittal regarding taxation and maintains that they requested two proposals from the committee. Specifically, the committee of experts advising the Spanish government proposes raising the minimum wage by 2026 by €37 per month (€1,221 per month in 14 payments), if it is decided that it will remain tax-exempt, or by €56 per month (up to €1,000).

Clash with employers

Díaz also announced that the social dialogue table with the major unions, CCOO and UGT, and the employers' association CEOE "will meet immediately." Sources at the Ministry of Labor anticipate that it could be convened as early as next week. "I ask [the unions and employers] to rise to the occasion," Díaz stated. Although she asserted that she is not giving up after reaching a tripartite agreement, the truth is that the negotiation is doomed from the start. This is not only because the employers' association has proposed a 1.5% increase, well below the minimum proposal from experts, but also because it disagrees on other issues such as the methodology used by the committee and the regulations governing the absorption of the minimum wage supplements demanded by the unions. In this latter respect, Díaz confirmed that the transposition of the European directive that includes this change will proceed in parallel with the minimum wage increase, but through separate decrees.

Likewise, Díaz and the president of the employers' association, Antonio Garamendi, have been engaged in constant confrontation for weeks. The social dialogue table has not reached any three-way agreement for some time, and tensions have risen regarding proposals such as paid leave for bereavement or palliative care: "I regret that Mr. [Antonio] Garamendi is prioritizing his reelection to the CEOE over doing good for his country. Garamendi is focused on his campaign," said Díaz. Garamendi's term ends in November 2026.