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When is the Minimum Wage approved and when is the increase applied in 2023?

Date: March 31, 2023 Time: 08:45:14

The new Minimum Salary of 1,080 euros gross per month is already a reality in Spain. Last Tuesday, January 31, the Government announced the rise of the SMI for the coming months of the year, however, there are many salaried workers who still do not know that although it has not yet been approved, it will come into force from January 1 January 2023 retroactively. However, the truth is that the Executive of Pedro Sánchez, at the request of the Ministry of Labor and Social Economy, is expected to approve the Minimum Interprofessional Salary on February 14.

Now, what does it mean that this new measure is retroactive? It is vitally important to know that regardless of the date on which the SMI is approved, the employee or the company must pay said economic difference to their employees in the following payrolls, going from the 1,000 gross euros distributed in 14 annual payments, valid until 2022, at 1,080 euros gross per month for 2023. Also in the event that the employee works part-time, that is, 20 hours a week.

Likewise, in the event that the salary of the salaried worker is distributed in 12 payments, it reaches 1,260 euros gross per month. Regarding the profile of the people affected by this increase, Unai Sordo, from Comisiones Obreras, 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 will be the Minimum Salary divided into 12 payments, that is, 1,060 euros gross per month.

What is the new minimum wage based on hours

Before breaking down the new Minimum Wage based on the hours worked, it is important to take into account that the Workers’ Statute, in its article 31, includes the right of every worker to receive two extra or extraordinary payments a year. Normally, they are charged in summer and at Christmas, although collective agreements may include other dates or even the right to three extraordinary payments.

The extra payments are not quoted, but they do have personal income tax withholding. But who decides when they are prorated? Well, the Workers’ Statute indicates that it may be agreed in a collective agreement that extraordinary bonuses be prorated in the twelve monthly payments. This means that, initially, the bonuses are not paid prorated, unless the collective agreement allows it or it is expressly agreed with the worker, as long as the agreement does not prohibit it.

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

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