Wage Trends in Collective Bargaining: Sectoral Gains and SMI Considerations

The average salary increase agreed in the collective bargaining framework through November stood at 3.49%. That rise came despite gaps with the core inflation rate, which registered 4.5% in the eleventh month, yet still exceeded wage growth for the year. Inflation slowed to 3.2% in November, but the wage uplift remained above it overall, underscoring a cautious but persistent gains path for workers in both sectors and firms. (Source: Ministry of Labor data summaries)

According to the collective agreement statistics refreshed by the Ministry of Labor on Thursday, the November increase surpassed the same period last year by 8.0% and was slightly lower than the 2.69 percentage points noted in October. This context helps illustrate how sector and company level settlements are evolving in real time.

Yet the wage rise within contracted agreements continues to trail the twelve‑month inflation average of 3.8% and falls short of the 4% benchmark often cited in the general recommendation of the fifth collective bargaining agreement (AENC) between employers and unions. (Source: Ministry of Labor summaries)

The fifth AENC sets a 4% salary increase for 2023, and it includes a guarantee clause. If the annual inflation rate for December exceeds 4%, workers receive an additional rise of 1%, with sector-specific conditions to be taken into account. (Source: AENC framework)

The November salary increase reached 3.5% in sectoral agreements, while company agreements posted a 3.25% rise. (Source: Ministry of Labor releases)

Company agreements cover more than 600,000 workers, and sectoral agreements affect around 10 million workers. (Source: Ministry of Labor statistics)

In 2023, agreements signed across sectors show average salary increases below the fifth AENC target, yet there are cases exceeding 4% in some contracts. By contrast, earlier agreements from previous years, valid into 2023, sometimes posted a lower 3.16% baseline, with a few reaching 4.14% in review. (Source: collective bargaining records)

In essence, the collective bargaining framework—reached between unions and employers—acts as a guide for the contracts negotiated this year, shaping wage expectations and negotiation dynamics. (Source: industry analyses)

Agriculture leads wage gains

The strongest sectoral lift is in agriculture, with an average increase of 3.96%; services follow at 3.63%; industry at 3.14%; and construction at 3.08%. (Source: Ministry of Labor sectoral breakdown)

Overall, the data cover 3,385 collective agreements with known economic effects, applying to more than one million companies and affecting 10.5 million workers by November. (Source: Ministry of Labor data)

Regarding the wage guarantee clause, November figures show that over 2.5 million of the more than 10.5 million workers covered by the agreements have these provisions. The clause allows annual salary adjustments aligned with the consumer price index to preserve purchasing power. (Source: contract texts and summaries)

Among the agreements, 501 out of 3,385 registered cases feature this salary guarantee clause, with 336 carrying retroactive effects and 165 without retroactive effects. (Source: contract registers)

SMI tied to collective bargaining movements

The progression of wages in collective bargaining is viewed by the Ministry of Labor as a key parameter for the annual adjustment of the minimum interprofessional wage (SMI) once it reaches 60% of the national average wage. (Source: ministry notes)

During a briefing this week, labor officials emphasized that the SMI should rise each year at a rate consistent with wage growth in agreements to maintain that relationship with the average wage. (Source: ministerial briefing)

However, wage policy is not the sole determinant in determining the SMI for 2024. The government remains committed to protecting the purchasing power of workers earning the minimum wage, and negotiations with employers and unions continue. (Source: government statements)

With these considerations in mind, labor officials anticipate further talks with stakeholders next week, although positions remain divergent: employers propose around 3% while unions seek no less than 5%. (Source: ongoing consultations)