On 22 January the government, employers, and trade unions secured an agreement that will raise the monthly minimum inter-professional salary (SMI). The monthly salary floor will rise from €900 to €90 (gross and over 14 month). The agreement, which should be taken up into a decree-law, stands as the first major announcement from the new government of Pedro Sanchez. In fact the Socialist Party and Podemos Party coalition government has set the goal of reaching an SMI equivalent to 60% of Spain’s average salary within 4 years, and which would result in a significant increase by 2023 (see our article 11571).
Spain’s SMI playing ‘catch-up’. Spain’s SMI lags other large economy equivalents and is making serious attempts at catching up fast. Frozen during the crisis years, the minimum salary grew 8% in 2017, before jumping 22.3% in 2019, and a further 5.5% now in 2020, making for an overall rise of 44.5% in the space of four years.
This latest rise will drive monthly salaries of €900 (gross) paid over 14 months as set by Spanish labor legislation up to €950 (gross and over 14 months). Trade unions are
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