After difficult negotiations with unions and employers, we aim to comply with the road map determined by the Government for another year.
The government’s goal is to fulfill its commitment to establish the Minimum Interprofessional Salary (SMI) at 60% of the average salary in Spain. By 2024, as predicted, there will be another increase in the minimum wage, which will directly affect the salary table of domestic employees.
Minimum salary of a domestic worker in Spain in 2024
Both unions and the Government agree on the increase in SMI for 2024. So, the minimum wage of a domestic worker working 40 hours a week is 1134 euros gross for 14 payments. Or in other words, the amount will increase from 15,120 Euros gross to 15,876 Euros.
The increase in SMI will particularly affect employees who do not have a contract within their company. 40 hours working day per weekwill be set as follows:
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1,134 euros per month in 14 payments.
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1,323 euros per month if distributed equally over 12 payments.
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37.80 euro/day.
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Total: 15,876 euros gross per year.
Specifically, an increase of more than 54 euros per month was made compared to 2023. This means that a full-time employee (40 hours per week) cannot receive a salary below the annual SMI under any circumstances.
Contribution of domestic workers is planned for 2024
These are the data to follow unless a change in the data on domestic workers’ contributions is confirmed.
Contribution types 2024
As of January 1, 2024, the contribution rates that will affect domestic employees due to the General Regime will be as follows:
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If these are general contingencies, it will be 28.30% (23.60% will be borne by the company and 4.70% by the worker).
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For unexpected work accidents and occupational diseases, the premium rates determined in the fourth additional provision of the Law No. 42/2006 dated 28 December on General State Budgets for 2007 will be applied. will be undertaken solely by the company or employer.
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Additional contribution for overtime due to force majeure will be 14%, 12% of which will be covered by the company and 2% by the worker.
Bonuses to be applied to SSI in 2024
Below are some of the bonuses or discounts that a worker can benefit from until 2024, provided that the requirements are met:
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There is a discount 20% in common contingencies covered by the employer. This bonus appears in RD 14/2017. This bonus does not eliminate what is available for large families. With the new application of unemployment right, employers will benefit from new taxable concepts, unemployment contributions and 80 percent premium in FOGASA.
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Large families: bonuses are preserved 45% of the offer for general contingencies as long as they request before 04/01/2023.
- 80% discount unemployment rate and contribution to the Salary Guarantee Fund (FOGASA).
- 75% reduction In the common contingency quota during temporary incapacity for workers over 62 years of age. (This discount will only be valid for the temporary disability period).
Extraordinary bonuses upon prior request
There are a number of outstanding bonuses that can be applied through an application to which supporting documents must be attached if:
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100% bonus fee for common contingencies To formalize a contract to replace a worker who is a victim of gender-based violence.
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100% bonus in total quota For the formalization of a temporary contract to replace the worker due to the risk during pregnancy or breastfeeding, childbirth and care of a minor child.
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100% bonus in total quota Worker replaced due to the above reasons.
What will the hourly wage of a domestic worker be in 2024?
Considering the 2023 SMI, the price/hour of a domestic worker in 2023 was 7,875 euros. The wage of a domestic worker is expected to be 8,268 euros per hour in 2024 where the pro rata portion of overtime pay and leave is included.
Therefore, when approved by the Council of Ministers, workers who benefit from this increase will have to receive their debts corresponding to this month.
Likewise, with the increase in SMI, the salaries of domestic workers also increase. As one might expect, this is how Salary tables for domestic workers in 2024After the last increase in the minimum wage pro rata extraordinary payments.
Salary of domestic workers by number of hours in 2024
In the absence of official data, the salary table of domestic workers reflects a number of changes that need to be taken into account. What is marked with an asterisk means that the official confirmation is expected to be updated.
The salary table for domestic workers based on hours worked will look like this:
Contribution types in 2024
Order PCM/74/2023 specified percentages for: Contribution rates in the General Social Security Regime as of January 1, 2023Until 2024 contribution rates are announced, they will continue to be as follows:
Contribution principles for domestic workers in 2024
Provisionally and until the General State Budgets are published, monthly wages and contribution bases for common and occupational contingencies for domestic workers will continue to be the same as those established in Decision PCM/313/2023:
Premiums for domestic workers in 2024
As of April 1, 2023, certain employers of low-income families will be eligible for a 30% or 45% bonus on wages for common contingencies, but legislation development is still pending.
There is also a general 20% reduction in contingency wages common to all employers. Similarly, some Large Family (FN) employers may be given a 45% bonus as long as they do not terminate the current employment relationship.
What will inflation look like in 2024?
Various prestigious economists in the country predict that inflation will be 3.3% in 2024 (one point less than the forecast in September). These are also the calculations of the Bank of Spain.
This means that prices will remain unchanged and Spain will rise from the fourth least inflationary country in the eurozone in 2023 to the seventh highest inflationary country in 2024.
Uncertainty adjusting interest rates to a more neutral levelas well as the determining factor of the oil and gas situation. According to various experts, controlling inflation will become complicated if the price of both raw materials tightens again due to geopolitical conditions or if supply chains are shaken again due to the Red Sea crisis.
MEI in 2024: How?
MEI is an extra tax introduced in the latest pension reform, supposedly to ensure its sustainability, that directly affects payrolls and business contributions.
HE MEI for 2024 It has been temporarily set at 0.7% per worker. This increase in contributions is shared between the employee (0.12%) and the employer (0.58%). So working people will see a 0.12% reduction on their payroll corresponding to this MEI, among other contributions.
It should not be forgotten that Intergenerational Equality Mechanism (MEI)This is a new tax approved in November 2021 following an agreement between the Government and unions. MEI includes: increase in social contributions A payment paid by companies and workers to balance Social Security accounts in the face of the influx of the ‘baby boom’ generation (those born between the 50s and 70s) in the coming years.
Development of the salary table for domestic workers since 2019
If you take a look at the different salary tables of domestic employees since 2019, you will be able to see the changes in the different contributions, the appearance of new taxes and the changes made to both gross salary and net salary.
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