The Ministry of Labour and Social Economy has drafted a Royal Decree setting a 5.3% increase in the Interprofessional Minimum Wage (SMI) for 2027. This proposal brings the minimum wage to 1,286€ per month across 14 payments, which equals 42.87€ per day or a total of 18,004€ annually.
The text, which the Ministry led by Yolanda Díaz has opened for public consultation, places the minimum wage rise above the 4.9% suggested by the committee of experts advising the government on the matter, but below the 7% requested by the CCOO and UGT trade unions.
The Ministry has set a deadline of 16th November to submit allegations to the draft Royal Decree. By that date, the election campaign will already be underway, as it is scheduled to start at midnight on Friday 13th November.
The government intends to attempt to approve the minimum wage increase in the Council of Ministers before the general election on 29 November. According to executive sources speaking to Europa Press, the government can approve the measure either during the election campaign period or while acting in a caretaker capacity once the election has taken place.
The government is under no obligation to reach an agreement with social partners regarding the minimum wage increase, as it is only required to carry out consultations. In principle, that consultation with trade unions and business leaders took place yesterday, and sources involved in the negotiations indicate that no additional meetings are expected to be held.
This 5.3% increase, which appears set to be the definitive figure, would take the SMI from the current 1,221€ per month to 1,286€ over 14 payments. This represents an extra 65€ per month compared to the current amount, whereas the experts advising the Labour Ministry had proposed a monthly increase of 60€.
The Treasury Minister, Arcadi España, defended the minimum wage increase planned for 2027 during an interview on the Radiocable programme ‘La Cafetera’. He stated that the measure is a positive element to care for the lowest earners and boost the economy, while confirming that it will continue to be exempt from personal income tax (IRPF).
The Minister highlighted that approximately two and a half million people in Spain receive the minimum wage, which has risen by 66% in recent years. He stressed that this salary does not pay IRPF tax and confirmed that this approach will remain in place. He added that citizens can expect a progressive government to continue dignifying the lives of those earning the minimum wage.
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