Spain: government and social partners secure agreement on a 5.5% increase in the minimum salary

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).