The Council of Ministers has approved this Tuesday the increase of the interprofessional minimum wage to 1,221 gross euros per month in 14 payments. The measure has immediate and retroactive effect from January 1. The agreement, closed by the President of the Government, Pedro Sánchez, with the unions and without the backing of employers, represents an increase of 3.1% compared to the previous year.
Impact on Girona and on Catalonia as a whole
In the regions of Girona, the CCOO union calculates that the increase will benefit a little more than 19,000 salaried individuals, which represents 5.9% of the province's workers. The calculation is based on an extrapolation of data from Catalonia, assuming a homogeneous distribution of those who receive the minimum wage.
In the State as a whole, the update of the SMI will affect nearly two million workers. The SMI goes from 1,184 euros gross per month to 1,221 euros in 14 payments, which represents an increase of 518 euros more per year for beneficiaries.
Conditions for employers and economic effects
The increase implies that employers will have to pay the arrears corresponding to the month of January. The amount will be 37 euros gross per month if the salary is paid in 14 installments and 43 euros if paid in 12 installments, or the proportional part in the case of part-time jobs.
To maintain a minimum wage, the cost for the employer stands at around 22,600 euros annually, which is equivalent to about 1,614 euros monthly in 14 payments, including salary and social contributions. The specific amount will depend on the sector and the type of contract, but the increase in spending for companies is approximately 700 euros more per year.
Statements and political context
"The increase in recent years is spectacular" - Yolanda Díaz, second vice president and Minister of Labor
The second vice president defended the measure at the press conference following the Council of Ministers. Díaz added that Spain is at record occupancy figures and that the evolution of the SMI is, in her opinion, a success story.
"The increase in the SMI to 1,221 euros, in 14 payments, is accompanied by the fact that it will not be taxed in personal income tax" - María Jesús Montero, First Vice President and Minister of Finance
Since Pedro Sánchez's arrival at Moncloa, the minimum wage has experienced a 66% growth, going from 735.9 gross euros per month to the current 1,221 euros.