The news is good for workers because a supplemental payment will appear on February paychecks. This extra income is earmarked for only a portion of employees who earn a defined wage level. The information follows an agreement between the government and unions to raise the national minimum wage.
The labor minister, Yolanda Díaz, faced a challenging path to push through one of the most significant measures of the current legislature. As the leader of Sumar and the second vice president, she negotiated intensely with social partners, unions, and employers to approve a raise in the minimum wage for 2024 by a specific percentage. In the process, some employer leaders walked away from the talks citing a lack of understanding with the other parties involved. Díaz had hoped to lift the base salary before the end of 2023 so workers would see the change in the new year, but that timetable was not met.
In the end, after several months of delay, the government and the unions signed an accord establishing a new minimum wage that surpasses the 1,080 euros previously considered. The measure is retroactive to January 1 of the current year, giving employees a double reason to welcome the updated payroll. The obligation now rests with companies to decide when to apply the new amounts and how to handle any legally mandated back payments for eligible workers. Typically, these extra payments are expected to appear toward the end of February or the early days of March.
The article below explains the new structure and the implications for workers as the plan shifts into practice.
What is the new minimum wage?
The minimum wage varies depending on how employers choose to pay their staff. Some firms pay in 12 installments, one monthly payment, while others distribute the annual amount across 14 paychecks, adding two extra payments in June and December. The annual gross total remains the same for all employees who receive the minimum wage: 15,876 euros gross per year. Depending on the pay schedule, employees may receive the following monthly gross amounts:
- 1,134 euros gross per month when paid in 14 installments
- 1,323 euros gross per month when paid in 12 installments
In addition to these base figures, workers may also receive bonuses for performance, night shifts, or other objectives if those are included in their contracts.
How much is the extra payout
The government has implemented a new minimum wage for the fifth time since 2018. The executive, formed by the coalition partners, has increased the minimum wage by more than 50 percent since Yolanda Díaz took charge of the labor portfolio. From 2019 to 2024 the minimum wage rose from 735 euros to 1,134 euros, with all supplementary payments affecting workers. Under the latest increase, employees will receive an extra payout corresponding to the new law, amounting to 54 euros or 63 euros if the two extra payments are spread across the 12 months. Therefore, on the upcoming payroll, the new amount will be reflected, and the 54 or 63 euros for the January delay will also be added.
The orientation for these changes is clear: workers will see a higher baseline wage, with any retroactive or delay payments bundled into the next payroll cycle. This adjustment is designed to ensure that the rule feels tangible to ordinary employees and that the payroll reflects the updated figures for the year ahead.