The Council of Ministers approved an increase in the monthly minimum wage for this year to €1,134 (about US$1,214) 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, 2024.
  • The raise marks a 5% increase from the 2023 minimum wage and a 54% increase from 2018.
  • The Council established new rules for transparent and predictable working conditions.

Background: The approval follows an agreement with the trade unions Comisiones Obreras and Union General de Trabajadores. In addition to the minimum-salary increases, the Council introduced new rules for employers to record conditions of work and employment. The new regulations prohibit on-call work and zero-hour contracts, meaning that workers won’t have to be permanently available to employers. In addition, the Council reduced personal income tax withholdings for those with low incomes.

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

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