Proposal to increase the minimum wage generates controversy between employers and unions.

The recent proposal from the Ministry of Labor regarding an increase in the interprofessional minimum wage (SMI) has sparked significant debate in both the business and social spheres. Vice President Yolanda Díaz suggests an increase of 50 euros per month, which would raise the SMI to 1,184 euros per month. However, business organizations CEOE and Cepyme have already expressed their opposition to this measure, arguing that the economic conditions do not support such an increase. The committee of experts convened by the Government recommended an increase within a range of 3.4% to 4.4%. Although unions like UGT seem to support the proposal, reaching a consensus between workers and employers is proving difficult. Lorenzo Amor, president of the Association of Self-Employed Workers (ATA) and vice president of CEOE, has indicated that the increase in the minimum wage in recent years has been disproportionate in relation to the growth of the economy and business activity. Amor pointed out that if the SMI increase is confirmed, there will have been accumulated increases of 60% over the last six years. This percentage, according to him, does not correspond with economic growth, raising serious concerns about the viability of many businesses, especially small and medium-sized enterprises. "Neither has the economy risen by 60% nor have the activities and businesses of the self-employed increased by 60%," he emphasized at a recent press conference. Despite the employers' rejection, it is important to note that this is not a determining factor in the final decision regarding the SMI. The update of the minimum wage is the exclusive competence of the Government, and the tripartite meeting that will be held is merely a consultative space. However, the lack of agreement could have significant implications for the stability of certain labor sectors. Employers argue that the increase in the SMI will negatively impact small and medium-sized businesses. According to data provided by ATA, 174,000 jobs have been lost in sectors such as agriculture and domestic work over the last five years, where the majority of workers earn the minimum wage. Amor stressed that this increase could lead to further job destruction in these vulnerable sectors. Furthermore, the analysis indicates that companies with fewer than five employees have been the most affected, with a loss of 62,000 jobs during the same period. Small businesses, particularly those with one or two employees, are the ones that suffer the most from the cost increases associated with the SMI. This poses a significant dilemma for many self-employed individuals, who are already facing considerable economic challenges. ATA maintains that a 50-euro increase in the SMI could translate into an annual cost increase of approximately 1,000 euros per employee. This figure not only includes the wage increase but also social contributions, which represents a heavy blow to the profit margins of many small businesses. "Can Spanish families with more than one caregiver afford to pay 3,000 euros more per worker? For many self-employed individuals, this is unmanageable," warned Amor. The current context is particularly complicated, as businesses also face additional burdens, such as the increase in the intergenerational equity mechanism and the rise in maximum bases. These cumulative pressures have led business organizations to advocate for a more balanced approach in determining the SMI. There is a call for the need to find a middle ground that considers the well-being of workers without jeopardizing the economic stability of businesses. Amor suggested that any increase in the SMI should be comparable to the average of the increases agreed upon in collective agreements and aligned with economic growth and public contract prices. Finally, employers are also calling for a review of the de-indexing law, which would allow public contracts to adapt to rising costs. This reform could be key to improving the sustainability of businesses that work with public administration. In summary, the debate over the SMI is far from resolved, and upcoming government decisions will be crucial for the immediate future of many workers and employers in Spain.