The interprofessional minimum wage for 2023 remains unsettled. The Ministry of Labor presented proposals to unions this Wednesday, inviting experts to reassess the base salary, which stands at €1,000 gross per month across 14 payments. Employers, after bringing in a reinforcement to the Labor Inspectorate to halt ungrounded actions, countered with written proposals to raise the minimum wage to 1,040 €. Some industrial sectors advocate for a higher target, pushing toward 1,100 €.
The ministry has avoided committing to a final figure, pending a decision from the Council of Ministers for publication in the Official State Gazette. Differences among managers hinder consensus, and it remains unclear whether the government will accept union demands, address workplace needs, or propose an alternate figure.
Initial forecasts suggested presenting the revaluation at the next ministerial meeting, with December 27 as the year’s final deadline. However, negotiations could extend, potentially pushing the decision into January, with retroactive effects possible. More than two million workers face the implications of the minimum wage change, particularly affects on younger workers, women, immigrant workers, and those in small businesses.
The Department of Labor intends to reconvene social partners to submit formal offers for the increase, though a date has not yet been set. The union leadership emphasized that a government proposal was essential, highlighting divisions within the coalition on how to proceed.
From cautious dialogue to deadlock
What began as a tripartite dialogue—an idyll at the start of the legislature—has entered a period of stalemate since the pandemic. The business sector, represented by CEOs, halted dialogue with the labor minister after feeling betrayed, signaling a shift in posture. Government officials have discussed potential increases to 1,046 € or 1,082 € under proposals considered by government experts. When employers were present at the table, unions pressed for the band that would secure the most workers’ rights, including a stronger push for higher wages and pensions.
Employers shifted their stance and entered the SMI negotiations, proposing a raise to 1,040 €, a figure below the government’s recommended range but above the increase granted to civil servants and the government’s own projection. Considerations also included reductions in operating costs for businesses and public contracts updated to reflect higher prices.
Centers have warned that purchasing power has eroded as prices rose, and productivity per worker remains below pre-pandemic levels. Growth prospects for the economy look tougher than anticipated for the coming year, complicating the wage decision.
What vice-president Yolanda Díaz underscored is that the inter-occupational minimum wage will continue to rise. Government calculations estimate that it will reach around 60% of the average salary. This target has been reiterated as part of a broader European social contract and was formalized in the coalition agreement, with a pledge to implement it before the legislature concludes.