When the year begins, the government plans to restart talks with social mediators about the Interprofessional Minimum Wage (SMI). The 2023 SMI represents a rise that will be applied retroactively from January 1. This was confirmed by Yolanda Díaz, deputy prime minister and minister of labor and social economy, during a public briefing reviewing the first year of labor reform.
Diaz indicated that negotiations would resume with an anticipated rate increase. The SMI is expected to rise again, possibly right at the start of the year, but she opted not to detail any changes until discussions were complete.
Asked whether there was agreement within the government’s socialist wing and with the first vice president Nadia Calviño on the precise figure the administration should adopt, Yolanda Díaz replied that talks about the SMI are proceeding with the prime minister. The government has included the measure in the royal economic package approved this Tuesday, extending the 2022 SMI of 1,000 euros per month to 2023 and signaling that the Labor Ministry would negotiate the figure for next year with social agents.
The royal decree, approved this Tuesday and published in the Official State Gazette (BOE) this Wednesday, extends the 2022 SMI through 2023 to ensure the continuity of dialogue and to allow one more year for an agreed increase in the interprofessional minimum wage, according to the decree text.
The administration emphasizes that this provision guarantees the active participation of social actors in shaping the SMI within a challenging social and economic context. It underscores a path of growth for this variable, aligned with European and international commitments, while maintaining continuity.
However, given the lack of an agreement by December 31, when the 2022 SMI expires, the government confirms that extraordinary and urgent reasons make it inevitable to maintain the measure from January 1, 2023. The decree states that this approach provides legal assurance and continuity for workers who rely on the SMI as a base wage.
Similarly, the 2022 SMI is extended temporarily within the social dialogue framework and in accordance with Article 27 of the Labor Law, until a decree determining the 2023 figure is approved, taking into account the consumer price index, national productivity, higher labor participation, national income, and the overall economic situation.
Finance Minister María Jesús Montero noted this week that efforts are underway to reach an agreement on the Interprofessional Minimum Wage in the first quarter of the coming year.
Experts and social mediators
The government has presented expert recommendations that vary from 4.6% to 8.2% for 2023, with a review six months later to assess adequacy in the face of inflationary pressures.
The major unions have proposed higher increases: CCOO advocates raising the SMI from 1,000 euros to between 1,082 and 1,100 euros across fourteen payments, implying an 8.2% to 10% rise. UGT supports increasing the direct SMI to 1,100 euros, while CEOE and Cepyme have proposed up to a 4% increase to 1,040 euros per month.
At the moment, the government has not tabled concrete numbers; it is expected, as in 2022, that the decision will be driven by expert recommendations. Yolanda Díaz is open to agreeing with social intermediaries on the increase, though while CEOE is cautious about exceeding a 4% rise, negotiations continue.
Bringing business leaders into the talks adds difficulty. They have set a 4% target for 2023 and argue that relations with labor authorities were strained after changes that would empower the Labor Inspectorate to verify the grounds cited by companies for layoffs.
In any scenario, the rise in the 2023 SMI will take effect retroactively from January 1, regardless of whether an agreement with unions is reached.