After difficult negotiations with unions and employers, the aim is to align with the Government’s roadmap for another year.
The Government seeks to fulfill its commitment to set the Minimum Interprofessional Salary (SMI) at 60% of Spain’s average wage. By 2024, another increase in the minimum wage is expected, directly impacting the salary table for domestic workers.
Minimum salary of a domestic worker in Spain in 2024
Both unions and the Government agree on raising the SMI for 2024. Therefore, the minimum wage for a domestic worker working 40 hours a week is 1,134 euros gross for 14 payments. In other words, the annual gross amount will rise from 15,120 euros to 15,876 euros.
The SMI increase will specifically affect employees without a contract within their company. The 40-hour workweek will be structured as follows:
- 1,134 euros per month in 14 payments.
- 1,323 euros per month if distributed over 12 payments.
- 37.80 euros per day.
- Total: 15,876 euros gross per year.
Notably, this represents an increase of more than 54 euros per month compared with 2023. This means a full-time employee (40 hours weekly) must receive at least the annual SMI; any salary below that threshold is not permitted.
Contribution of domestic workers in 2024
These figures should be followed unless a variation in data about domestic workers’ contributions is confirmed.
Contribution types 2024
As of January 1, 2024, the contribution rates applicable to domestic employees under the General Regime are as follows:
- If these are general contingencies, the rate is 28.30% (23.60% borne by the employer and 4.70% by the worker).
- For unexpected work accidents and occupational diseases, the premium rates determined in the fourth additional provision of Law No. 42/2006 dated 28 December on the General State Budgets for 2007 will apply, and will be borne solely by the employer.
- An additional contribution for overtime due to force majeure will be 14%, with 12% covered by the company and 2% by the worker.
Bonuses to be applied to SSI in 2024
The following bonuses or discounts may apply to a worker until 2024, provided that the requirements are met:
- A 20% discount in common contingencies covered by the employer. This bonus appears in RD 14/2017. It does not supersede existing benefits for large families. With the updated unemployment provisions, employers may benefit from new taxable concepts, unemployment contributions, and an 80 percent premium in FOGASA.
- Large families: bonuses remain at 45% of the general contingencies allowance if requested before 04/01/2023.
- 80% discount on the unemployment rate and the 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 applies only during the temporary disability period.
Extraordinary bonuses upon prior request
Several outstanding bonuses can be applied for through a formal application with supporting documents if required:
- 100% bonus for common contingencies to formalize a contract that replaces a worker who is a victim of gender-based violence.
- 100% bonus in the total quota for the temporary contract replacing a worker due to risk during pregnancy or breastfeeding, childbirth, or care of a minor.
- 100% bonus in the total quota for a worker replaced for the above reasons.
What will the hourly wage of a domestic worker be in 2024?
Based on the 2023 SMI, the price per hour for a domestic worker in 2023 was 7.875 euros. The wage for 2024 is projected at 8.268 euros per hour, including the pro rata portion of overtime pay and leave.
When approved by the Council of Ministers, workers benefiting from this increase should receive the corresponding amounts for the current month.
As the SMI rises, domestic workers’ salaries also increase. This naturally affects the salary tables for domestic workers in 2024 after the latest minimum wage adjustment and pro rata extraordinary payments.
Salary of domestic workers by number of hours in 2024
In the absence of official data, the salary table reflects several changes that need to be considered. An asterisk indicates that 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
PCM/74/2023 specified percentages for the General Social Security Regime. From January 1, 2023, until 2024 contributions are announced, the rates remain 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 follow Decision PCM/313/2023.
Premiums for domestic workers in 2024
Since April 1, 2023, certain low-income family employers qualify for a 30% or 45% bonus on wages for common contingencies, though legislation is still evolving.
A general 20% reduction in contingency wages applies to all employers. Some Large Family employers may receive a 45% bonus provided the current employment relationship is not terminated.
What will inflation look like in 2024?
Various reputable economists in the country project an inflation rate of about 3.3% for 2024, a touch lower than a prior forecast from September, according to the Bank of Spain.
Prices are expected to hold steady, and Spain would rise in the ranking of eurozone inflation from the fourth-lowest in 2023 to the seventh-highest in 2024.
Factors like interest rate adjustments, the oil and gas situation, and potential supply-chain disruptions due to geopolitical conditions could complicate inflation control.
MEI in 2024: How?
The Intergenerational Equality Mechanism (MEI), a new tax linked to pension reform, affects payrolls and business contributions.
The MEI for 2024 is temporarily set at 0.7% per worker, with 0.12% paid by the employee and 0.58% by the employer. This change means workers will see a small payroll deduction, alongside other contributions.
The MEI was approved in November 2021 after a government-union agreement and aims to balance Social Security accounts amid demographic shifts.
Development of the salary table for domestic workers since 2019
Looking at salary tables since 2019 reveals changes in contributions, new taxes, and adjustments to gross and net pay.
For more information, a cited source provides further details. (citation: official government data and industry summaries)
End note
Job opportunities and public- and private-sector updates continue to shape compensation trends for domestic workers in Spain as 2024 progresses.