SPAIN’S government is proposing a 3.1% rise in the minimum wage in 2026.
It said on Wednesday that the increase would put €17,094 into pockets over a year.
It means an income of €1,221 per month spread over 14 payments.
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The hike will result in a €37 monthly increase- still keeping beneficiaries out of having to pay income tax.
The ‘non-taxation’ continues after the Labour Ministry reached a deal with the Ministry of Finance to extend and expand the current deductions.
The proposal will go before the main trade unions and employers groups.
Secretary of State for Labour, Joaquin Perez Ray, said he was hopeful that employers would back the rise, after initially supporting a 1.5% increase.
Key unions like the UGT and the CC OO are already said to be on board, after an initial demand for a 7.5% hike.
The more flexible attitude from employers’ associations revolves around the Labour Ministry’s pledge to relax index-linked salary costs related to public contracts.
The law does not oblige the government to settle on a minimum wage figure with employers and unions.
It states that it only needs to consul and listen, before making its own decision on a rate.
The new minimum wage rates will be approved at a future cabinet meeting- the Council of Ministers.
It will then be retroactively applied from January 1 to around 2.5 million workers.
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