Debate on the increase of the Minimum Interprofessional Wage in Spain intensifies.

Debate on the increase of the Minimum Interprofessional Wage in Spain intensifies.

The debate over the increase of the minimum wage in Spain is intensifying, with proposed raises ranging from 3.4% to 6%, leading to disagreements.

Juan Brignardello, asesor de seguros

Juan Brignardello Vela

Juan Brignardello, asesor de seguros, se especializa en brindar asesoramiento y gestión comercial en el ámbito de seguros y reclamaciones por siniestros para destacadas empresas en el mercado peruano e internacional.

Juan Brignardello, asesor de seguros, y Vargas Llosa, premio Nobel Juan Brignardello, asesor de seguros, en celebración de Alianza Lima Juan Brignardello, asesor de seguros, Central Hidro Eléctrica Juan Brignardello, asesor de seguros, Central Hidro
Economy and Finance 16 HOURS AGO

The debate over the increase in the Minimum Interprofessional Wage (SMI) in Spain is taking on a new dimension in the current economic context. Experts from the Ministry of Labor have proposed an increase that could range between 3.4% and 4.4%, which would raise the SMI to a figure between 1,172.5 and 1,184 euros per month, distributed over 14 payments. However, both the unions and some sectors of the government are advocating for a more significant increase, which has triggered a clash of interests and opinions. Union leaders, such as Pepe Álvarez from UGT and Unai Sordo from CCOO, have expressed their disagreement with the proposed figures, demanding an increase between 5% and 6%. This difference in expectations highlights the growing concern about the purchasing power of workers, especially in a context where the prices of basic goods continue to rise. The current SMI of 1,134 euros per month has been controversial among different ministries, particularly between the Ministry of Labor, led by Yolanda Díaz, and the Ministry of Economy, headed by Carlos Cuerpo. This disagreement is not new; it has already manifested in other labor aspects, such as the possible reduction of the working week to 37.5 hours. The Minister of Labor has been clear in stating that macroeconomic indicators do not reflect the daily reality of citizens. Díaz has pointed out that salaries in Spain are "very, very moderate" and has emphasized her commitment to work towards adjusting the SMI and, in general, salaries to a level closer to European standards. In this regard, the minister has urged her cabinet colleague to respect the recommendations of the committee of experts advising the government on this issue. The process of reaching an agreement on the SMI increase involves several actors. The intention of the Ministry of Labor is to apply an increase that has retroactive effects from January 1 of this year, although it is necessary to negotiate with social agents, which include the CCOO and UGT unions, as well as the business organizations CEOE and Cepyme. Recently, the committee of experts reached an agreement on the recommendation for an increase, which opens the door to negotiations with unions and employers. Vice President Díaz expressed optimism about the possibility of reaching a consensus, stating that there is room for an agreement once the committee's proposal is known. This committee, established in January 2021 and composed of government members and experts, aims to ensure that the SMI maintains its value in relation to the average wage, as established by the European Social Charter. To achieve this, analyses have been carried out, and various statistical sources have been taken into account to inform the recommendations regarding the SMI increase. In the past, increases in the SMI have been a source of dispute between the government and business organizations. In 2024, the government agreed on a 5% increase, but CEOE and Cepyme did not support this agreement, arguing that their demands to link the SMI to public contracts or to establish bonuses for the agricultural sector were not met. This highlights the lack of consensus that has characterized recent SMI increases. The government's commitment is that, through changes to the Workers' Statute, the SMI must represent at least 60% of the average wage, a goal that remains in the sights of the authorities. The implementation of an automatic SMI increase, independent of government policy, is another proposal being considered to ensure that workers do not lose purchasing power in the future. In conclusion, the increase of the SMI in Spain presents itself as a critical issue that involves both social justice and economic sustainability. With the committee of experts' report in hand, it is time for workers and employers to engage in a productive dialogue that guarantees a fair and necessary increase for millions of citizens who depend on this minimum wage for their survival.

View All The Latest In the world