Understanding Spain’s 2024 Minimum Wage Update and Its Impact on Workers

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Recent changes to Spain’s minimum interprofessional wage have sparked questions among workers and employers alike. In 2024, the minimum wage was set at 1,134 euros gross per month, distributed over 14 payments. This adjustment reshapes the country’s salary structure. A key question emerges: which workers must be trained or prepared for these changes?

To understand the issue thoroughly, it helps to know that the minimum interprofessional wage acts as the floor for earnings, ensuring workers are not paid less than the established level. In 2024, this means no full-time employee should receive less than 1,134 euros gross each month.

This update, approved by the Ministry of Labor with unions but without employer consent, primarily affects workers whose total income, including base pay and wage supplements, falls below the new figure. In this context, those currently earning less than 1,134 euros gross per month in 14 payments or less than 1,323 euros gross in 12 payments with prorated extra payments will be direct beneficiaries of the increase.

What should a worker do if earnings are below the minimum wage? In principle, nothing immediate. Employees will receive an additional payment on the next payroll to cover any outstanding amounts. The increase is retroactive to January 1, but it becomes effective only after publication in the Official Gazette. Source: Ministry of Labor.

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Salaries higher than the minimum wage

For those who already earn more than the new minimum, the situation differs. If an employee’s salary exceeds the updated minimum, a company is not legally obligated to increase that employee’s pay in lockstep with the minimum wage rise. In other words, those earning above the threshold can continue with their current salary without an automatic increase tied to the SMI change.

Another factor to consider is how salary supplements and benefits are treated. Additional payments such as seniority, hardship, or dangerousness are considered when calculating whether an employee meets the minimum wage. Consequently, a worker’s base salary might be below the minimum, but when supplements are added, the total may meet or exceed the required amount.

Practically speaking, the 2024 increase means that only workers whose base pay plus supplements fall below 15,120 euros gross per year will experience an income rise. This underscores the importance of understanding how Spain structures salaries and how changes to the minimum wage can affect employees differently depending on their current pay and benefits. Source: Ministry of Labor.

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