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How does the increase in the Minimum Wage to 1,080 euros per month affect me in 2023?

Date: March 29, 2024 Time: 12:28:22

After several comings and goings between the Government and the unions, the Minimum Wage rises to 1,080 euros per month, although without the support of the CEOE chaired by Antonio Garamendi. This was announced yesterday by Pedro Sánchez during his appearance in the Senate. However, the question now is… How does the rise in the SMI affect me? Well, the first thing to know is that this economic measure promoted by the Ministry of Labor and Social Economy, led by Yolanda Díaz, has a retroactive active character from January 1, 2023.

This means that it is valid from the beginning of the year, so those workers who receive the SMI must see their salary compensated in the following payrolls after the increase. But, let’s go a step further in this matter. Who collects the Minimum Wage? The truth is that today it reaches 2.3 and 2.5 million workers in Spain and 38% of SMEs with employees. Precisely in this sense, Unai Sordo, general secretary of the CCOO, pronounced yesterday: “The increase in the SMI will benefit 13.7% of the salaried population of our country.”

We are going to try a new increase in the SMI of 8%, to reach 1,080 euros, as agreed with the unions.

We comply with our commitment to place it at 60% of the average salary in our country.#GobernamosContigo pic.twitter.com/34g2SZ35Lv

— Pedro Sánchez (@sanchezcastejon) January 31, 2023

Who collects the Minimum Wage?

Regarding the profile of the person affected by this increase, the trade unionist stated that “we are talking about a woman between the ages of 16 and 34, with a temporary contract and who works in the agri-food sector or in services.” In addition, it also impacts more among young people, since having less professional experience is more likely to be exposed to lower salaries.

This is reflected in the Active Population Survey (EPA). 31.7% of those under 24 receive the minimum wage and this percentage drops to 19.2% for those between 25 and 34 years of age, 12% for those between 35 and 44 years of age, and 11.3% for those between 45 and 55, and 10.3% for those 55 and over. Regarding the sectors, it is reflected as follows:

Agricultural sector: 46.7% of farm workers. Services sector: the incidence is 14.5%. Industry sector: 7.6% of its employees. Construction sector: 3.8 of its professionals .

The rise in the SMI affects the agricultural and service sectors more. And in the territories with the highest incidence of these sectors: Extremadura, the Canary Islands, Andalusia and Murcia.

Therefore, it also has a role of territorial rebalancing and with respect to the emptied Spain. pic.twitter.com/4BdtQsRTEZ

— Unai Sordo (@UnaiSordo) January 31, 2023

Does the increase in the Minimum Wage affect me?

It depends on what is in your employment contract. If you collect 1,000 euros gross per month divided into 14 payments, the payer or employer must raise the Minimum Salary to 1,080 euros per month retroactively from last January. In the event that your salary is greater than 1,000 euros, it does not affect you, since the SMI raises the minimum amount to be charged by salaried workers, but it is not revalued.

* This website provides news content gathered from various internet sources. It is crucial to understand that we are not responsible for the accuracy, completeness, or reliability of the information presented Read More

Puck Henry
Puck Henry
Puck Henry is an editor for ePrimefeed covering all types of news.
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