The government announced that the interprofessional minimum wage (SMI) will rise to 1,080 euros monthly gross, paid in 14 installments. HR departments and agencies are already calculating how the 8% nominal increase, from the current 1,000 euros, will impact payroll. The change will affect about 2.5 million workers and will raise labor costs for companies that employ individuals earning the SMI, as employers must cover the higher salary plus the associated rise in social contributions.
The wage bill increase, effective from January 1 and continuing with the implementation of the Intergenerational Equality Mechanism (MEI), will feed the retirement fund. This applies to all workers regardless of earnings and, on average, translates to a monthly cost increase of around 10 euros per employee earning the SMI. These are the key factors influencing the financial landscape for involved parties.
How does it affect the employee?
The new government bulletin confirms the SMI at 1,080 euros gross in 14 installments. That amounts to 15,120 euros per year for a standard 40‑hour workweek. Since the amount is gross, some of it may not appear in the net pay after deductions to the public treasury. Of the 1,080 euros, about 1,006.6 euros typically reaches the worker’s pocket after standard deductions. Around 6.8% goes toward social and unemployment contributions, with adjustments possible based on personal tax situations and family status.
The impact of the SMI increase will vary by sector. Some industries already pay higher base wages, while others have smaller increases. Sectors such as agriculture, food processing, private service centers, and delivery services will experience distinctive effects. Domestic workers and their employers are also affected because many families set compensation levels according to the SMI.
How does it affect the entrepreneur?
Companies face an additional monthly cost of about €129.7 for every full‑time employee earning the minimum wage. Annually, that is roughly €1,556.4 per worker. This estimate comes from analyses by professional associations and employer groups. The calculation assumes a worker earning €1,000 under the previous SMI and now receiving €1,080, with the additional €129.7 distributed across 12 payments as the minimum wage is typically paid in 14 installments but divided for payroll purposes.
The MEI introduces a retroactive element, requiring companies to adjust payroll in February to reflect payments that should have occurred in January if the measure had been adopted sooner. Overall payroll expenses for a minimum wage earner reach about €1,668.24 per month when salary and social contributions are combined. This figure reflects the total amount that employers contribute beyond the salary alone.
Labor costs for Spanish companies have increased on multiple fronts. The MEI adds about 0.6 percentage points to social contributions, with roughly 0.5 points paid by the employer and 0.1 by the employee. For example, a gross salary of 2,000 euros would show an extra 12 euros paid by the company and 2 euros paid by the worker per month. Analysts estimate this surcharge will generate a sizable revenue stream for the government budget this year, guiding overall fiscal planning.
How does it affect the self-employed?
Historically, the minimum wage influenced the minimum contribution base for self‑employed individuals, and when the wage rose, contributions rose as well. In 2023 a new self‑employment contribution system tied payments to net income, altering how changes in the SMI affect them. The interprofessional increase does not automatically affect those who are genuinely self‑employed without employees. Those who hire staff and pay salaries governed by the SMI will feel the impact. Data indicates a large share of self‑employed workers pay salaries aligned with the SMI, though the exact share varies with updated figures.