Overview
- The expert committee outlined two scenarios for the SMI: a 3.1% rise if exempt from IRPF and a 4.7% rise if taxed.
- In euro terms, the proposals would lift the SMI to €1,221 or €1,240 per month on 14 payments, up from the current €1,184.
- The Labor Ministry will convene social dialogue as employers press for a 1.5% increase and unions push for about 7.5%.
- A dispute over limiting the absorption of wage supplements could trigger a legal fight, according to positions set out by unions and the employers’ confederation.
- Basque workers stand to gain most in net pay because a recent regional reform exempts incomes under €20,000 from IRPF, eliminating withholdings on the SMI.