How do you know if your company needs to raise its floor after an increase in SMI?

Recent increase Minimum Interprofessional Wage (SMI) It raised important questions among workers and employers. In 2024, SMI increases to 1,134 euros gross per month, divided into 14 payments; This is a change that directly affects the country’s salary structure. But an important question arises: Which workers need to be trained?

To better understand this issue, it is important to recognize that the SMI acts as a minimum salary threshold that determines the minimum amount a worker should receive in Spain. This way no employer can pay employees less than the current SMI. In 2024, this means that no full-time employee should be paid less than: Monthly gross 1,134 euros.

This SMI update, approved by the Ministry of Labor with unions and without employers, will mainly affect workers whose income, including base salaries and wage supplements, are below the new projected figure. In this context, workers who currently receive less than 1,134 euros gross per month in 14 payments or less than 1,323 euros gross in 12 payments (with prorated extra payments) will be the direct beneficiaries of this increase.

What should I do if I earn less than SMI? In principle, nothing, because workers will receive an extra payment corresponding to the outstanding debts in the next payroll. Of course, although the increase is retroactive to January 1, it will not come into force until it is published in the Official Government Gazette (BOE).

Salaries higher than SMI

However, the situation is different for those who currently earn more than these amounts. If an employee receives a salary higher than the new SMI, The company is not legally obliged to increase its salary in parallel with the SMI increase.. This means that even if the SMI increases, those currently earning above this can continue to receive the same salary unchanged.

Another thing to consider is treatment. salary supplements. These suffixes, which can include concepts such as seniority, hardship or dangerousness, are taken into account when calculating whether an employee will receive minimum wage. Therefore, a worker’s base salary may be lower than the SMI, but when salary contributions are added it may reach or even exceed the amount prescribed by the minimum wage.

In practical terms, the increase in SMI in 2024 means that only workers whose base salary plus supplements is less than €15,120 gross per year will see an increase in their income. This highlights the importance of understanding how salaries are structured in Spain and how changes to SMI may affect employees differently depending on their current salary situation.

Source: Informacion

Popular

More from author

Slovenia and Ukraine sign security agreement 00:01

Slovenian Prime Minister Robert Golob signed an agreement on security cooperation with Ukrainian President Vladimir Zelensky. This was reported on the Slovenian government's social...

Sanctions against Russia worked in Kazakhstan: Astana is getting rid of Russian securities Kazakhstan Depository requested the withdrawal of Russian securities due to US...

What conditions did Kazakhstan set and why? Holders of Russian securities must withdraw them from the nominal holding of the Central Securities Depository of Kazakhstan...

Passengers of the plane landing in Krasnoyarsk were welcomed in the airport terminal building 07/18/2024, 23:52

Passengers of the New Delhi-San Francisco plane, which urgently landed in Krasnoyarsk, were welcomed in the airport terminal building. I told about this DEA...

Former Deputy Chief of General Staff Vadim Shamarin confessed to his crime 18.07.2024, 23:39

The military garrison court No. 235 extended the pretrial detention of former head of the Main Directorate of Communications and Deputy Chief of the...