Alicante is set to gain substantially from the 5% rise in the Minimum Interprofessional Wage (SMI) agreed between the Government and the unions, due to the large number of workers directly tied to this indicator. In the region, many collective agreements foresee low wages, and those agreements will now require review. It is notable that the province ranks among the lower tiers for average pay in the country, according to the latest official Social Security statistics.
In total, nearly 100,000 Alicante residents will see higher incomes as a consequence of the new SMI, according to calculations from the CC OO union. Across the Valencian Community, about half of workers will experience an increase for the same reason. On a national level, CC OO projects beneficiaries at nearly two million; this figure rose to 2.5 million when the deal was announced, as stated by the Minister of Labour.
The agreement raises the minimum monthly salary from 1,080 euros to 1,134 euros, with the salary continuedly paid in 14 monthly instalments. This results in a gross annual SMI of 15,876 euros.
The increase will directly affect workers not protected by a contract, such as cleaners and staff in many small and medium-sized enterprises. It will also have a notable impact on industries like agriculture where daily wage earners are tied to the minimum income level.
Additionally, in Alicante, the SMI rise will prompt a review of salary tables in several collective agreements. Many of these agreements include low-category wages under this threshold, with the bulk tied to the service sector. Examples include provincial collective agreements for supermarkets and food stores, as well as cleaning sector agreements.
Who benefits from the SMI increase to 1,134 euros in 2024?
The message is clear: salaries must keep rising so workers can live dignified lives. There should be no situation where staff cannot make ends meet while tourism, hospitality, and other major sectors post strong results. Francisco García, general secretary of CC OO in l’Alacantí i les Marines, stresses that the increase must be fully passed on to workers and not offset by cuts to supplements. He also warns against a repeat of past practices where employers balanced higher SMI by trimming additional pay.
Yolanda Díaz, general secretary of UGT in l’Alacantí-la Marina, highlights that the reform will particularly aid two vulnerable groups in the labor market: women and young workers, who are often found in lower-paid positions. She describes the agreement signed in Madrid as a step toward narrowing the gender gap and notes that robust consumer spending remains a key driver of the economy, supporting business activity.
Regional employers, however, express reservations. The CEV notes that the current slowdown reduces room for a new cost increase for companies. They remind that firms are already facing higher costs for energy, raw materials, and interest rates, so maintaining current employment levels should be a priority and any salary increase should be carefully calibrated to the economic context.
Asaja Alicante’s president, José Vicente Andreu, describes the Madrid agreement as devastating for the sector. He notes that labor costs account for more than half of total expenses and argues that while higher wages are important, the sector must compete with imports from countries with lower wage levels to sustain national production and preserve jobs.
Women, young workers, and employees on permanent contracts feature prominently in CC OO’s national analysis. It shows that most beneficiaries are women, who currently constitute about 55% of employees earning wages aligned with the SMI. The data also reveals that young people are heavily represented among those at the minimum wage level, with roughly 63% under 35. Notably, precarious workers are less represented among those affected. Sectorally, agriculture leads the way with 45% of its workforce earning SMI, followed by trade and hospitality at 19.5% and manufacturing at 14.8%.