How much does it cost companies and the self-employed to raise the minimum wage to 1,080 euros?

The government announced that interprofessional minimum wage (SMI)) will rise 1,080 € monthly gross (in 14 payments) and agents and company human resources departments They’ve already pulled out the calculator to estimate how much this 8% nominal increase over the current 1,000 euros will cost them. This will give approx. 2.5 million workers This will mean an increase in labor costs for the companies that make a contract with them. And they will have to contribute more to pay for both the salary increase itself and the corresponding increase in social contributions coupled with that increase.

An increase in the wage bill added from this 1 January to the entry into force of the Intergenerational Equality Mechanism (MEI), to feed the retirement piggy bank, which applies to all workers, no matter what they earn, and On average, it represents an increase in spending for companies of around 10 euros per month for each employee with an SMI.. These are the keys to ascension for the pocket of those involved.

How does it affect the employee?

New install”government official bulletin (BOE), the minimum wage will be determined as 1,080 euros gross in 14 installments. Equivalent to 15.120 Euro per year; in case of 40 hours a full day. This 1,080 euros is gross at the beginning, so the worker does not enter them into the checking account as at the end of the month and some of it goes to the public treasury. This is 1,080 gross euros, 1,006.6 € it goes into the pockets of the workers. Well, 6.8% of social and unemployment contributions should be deducted from the salary, taking into account any time that the worker is not entitled to additional deduction in personal income tax due to his family situation.

The impact of the increase in SMI will be variable depending on the industry, as some will have a high rated salary while others will have a residual. In guilds like agriculture-foodprivate business centers or delivery companies, among others, will have special incidence. It will also affect domestic workers and to the families who hire them, as it is common practice for them to charge, according to the SMI.

How does it affect the entrepreneur?

Companies have to bear an additional cost €129.7 one month For every full-time employee earning the minimum wage. What is the same thing 1,556,4 euros per yearAccording to the calculations provided by Col legi de Gestors Administratius de Catalunya and by the employer prick. The calculation is based on the assumption that an employee received a salary of €1,000, the SMI of 2022, and now continues to receive €1,080. The additional 129.7 euros is 12 payments, considering that although the minimum wage is usually stated in 14 payments, companies pay it by dividing it into two.

An increase in the minimum wage Retroactive effect until 1 JanuaryCompanies must make an additional payroll to be paid in February with the amounts they should have paid last month had the Government not delayed in adopting and approving the measure. In total, the cost of hiring a minimum wage earner for a company amounts to 1,668.24 euros per month, between the salary paid and the contributions paid to SSI. IT

This year Spanish companies have seen labor costs rise on several fronts. On the one hand, there is the enactment of the MEI, which represents an overall increase of 0.6 points in social contributions, with 0.5 points paid by the company and the remaining 0.1 points by the employee. To give a practical example, in the case of a gross salary of 2,000 Euros, this would be listed as an additional 12 Euros paid by the company, 10 Euros paid by the company and 2 Euros paid by the worker. The executive’s estimate is to collect a total of 2,793 million euros this year with this surcharge, as shown in the General Government Budget.

How does it affect the self-employed?

Historically, the minimum wage was directly minimum contribution base who paid self employed and when one rose, the other rose too. However, this 2023, the new contribution system for the self-employed, linking their contributions to their net income, went into effect. This prevents the inter-professional minimum wage increase from affecting them. In other words, as their business develops, they will continue to pay according to the slice that touches them. They will be affected if they have employees hired in their business and are paid according to the SMI. according to incoming data upta83% of paid self-employed people pay salaries according to the SMI.

Source: Informacion


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