Overview
- The Ministry of Labour's expert committee recommended a 4.9% increase on Wednesday, November 4, raising the SMI from €1,221 to €1,281 gross per month in 14 pays, a €60 monthly gain.
- The committee's main calculation assumes the SMI will remain exempt from income tax and gives an alternative showing that if the wage were taxed the required rise would be about 11% to reach €18,891 annually.
- Secretary of State Joaquín Pérez Rey convened CEOE, Cepyme, UGT and CCOO to discuss the proposal and unions have pressed for at least a 7% rise while employer groups have not publicly endorsed a position.
- The government has signalled it intends to approve the SMI by royal decree before the November 29 general election and can set the level even if it is in caretaker status.
- Coverage differs on the exact final step this week with most outlets reporting the experts' 4.9% recommendation and one publication saying the ministry published a slightly higher 5.3% figure for public consultation; the SMI is legally fixed by government decree and past increases have sometimes been applied retroactively.