More than 2 million workers stand to gain from the 2024 SMI increase in the United States and Canada

more than 2 million people

CCOO’s analysis, drawing on EPA data, outlines who stands to gain from the new SMI increase in 2024. The focus remains on full-time workers, with women and younger workers identified as the largest beneficiaries. In 2024, roughly 17.1 percent of full-time women and 26.8 percent of workers aged 16 to 24 will be covered by the minimum wage increase. Among temporary workers, the impact is notable as well, with 19.8 percent affected in 2024, and in specific sectors such as agriculture where 45.9 percent of workers are projected to be paid at or near the SMI, and in trade and hospitality where 19.5 percent of workers fall under the SMI in 2024. These figures underscore a broad impact across the economy, with younger workers and women bearing the largest share of the increase.

Additionally, estimates indicate that 28 percent of total full-time employees who will receive SMI in 2024 amount to about 1.96 million workers in the trade and hospitality sectors alone, which translates to 548,222 individuals. These numbers help illuminate how the new wage policy reaches deeper into the labor market within these industries.

more than 2 million people

Government estimates place the total benefiting group at more than 2.5 million. Women and young workers form the core of this group, with about one third of beneficiaries coming from these two demographics. CCOO’s refined calculations specify that 1.96 million full-time workers will benefit, representing 13.4 percent of the broader full-time workforce. Should potential additional workers be included, the total could rise to about 2.3 million, though the analysis centers on full-time employment.

More women than men

CCOO’s analysis shows that women were the main beneficiaries of the SMI increase in 2023, with 805,343 employees or 12.7 percent of full-time workers affected. The expectation for 2024 is even higher, with 1,082,350 women benefiting, equal to 17.1 percent of all working women and accounting for roughly 55 percent of the 1.96 million people projected to receive SMI this year. In contrast, the figure for men receiving SMI in 2023 stood at 633,791 full-time male workers, rising to 878,631 in 2024 when looking at the broader male full-time workforce.

First of all, with a permanent contract

Taken in absolute terms, more than two million minimum wage earners hold permanent contracts, a majority of 71 percent, while 29 percent are on temporary arrangements. CCOO’s analysis notes that temporary contracts carry a significantly higher incidence of SMI exposure than permanent contracts.

Another takeaway is that the relative incidence of SMI among temporarily salaried workers in 2023 (15.4 percent) nearly doubles the rate among permanent salaried workers (8.6 percent).

By 2024, the 13.4 percent share of full-time workers benefitting from the SMI increase of 54 euros reflects a split of 12 percent among permanent contracts and 19.8 percent among temporary contracts.

3 out of 10 beneficiaries are concentrated in trade and hospitality

The sector that concentrates activity in trade and accommodation shows the largest number of workers tied to SMI. EPA data indicate 414,934 full-time workers receiving SMI in 2023, rising to 548,222 in 2024, which accounts for 28 percent of the total 1.96 million workers benefiting that year. The distribution across sectors after trade and hospitality shows public administration, health and education with 290,830 workers; other services with 271,635; financial services with 254,864; transportation, storage, information and communication with 156,125; and industry with 104,834.

under 35

Age-based analysis from EPA highlights 25 to 34 as the largest cohort among minimum wage beneficiaries in 2024, with 541,765 full-time workers in that group. This represents 27 percent of the total 1.9 million potential SMI beneficiaries.

Combining age groups, CCOO notes that 63 percent of SMI recipients in 2024 are aged 35 and older. Yet the relative incidence remains higher among the youth, with 26.8 percent of full-time workers aged 16 to 24 expected to receive SMI in 2024, compared to 10.1 percent for those aged 25 to 34 and those aged 55 and above.