The Council of Ministers increased the monthly interprofessional wage (SMI) to 1,184 euros (about US$1,238) in 14 payments.

Key Points

  • The new minimum wage, which is expected to benefit an estimated 2.5 million workers, will be backdated to Jan. 1, 2025.
  • The minimum pay received by a worker is being increased by 50 euros per month and 700 euros per year and marks a 61% increase from the 2018 minimum wage.

Background: The government of Spain framed the minimum wage increase as part of the roadmap for future action “in favor of workers and the middle class.” Spanish immigration authorities recently announced a change in practice regarding proof of social security coverage for intra-company transferee permit applications, and both of these measures highlight the government’s labor reform roadmap designed to achieve “historic” employment figures. Employers should take the new minimum monthly salary into account when planning their 2025 budgets.

This alert has been provided by the BAL Global Practice Group.

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