Spain to increase minimum wage before November elections

The Spanish government has confirmed that the minimum wage (SMI) will be increased before the general elections scheduled for November 29. While the exact percentage and date have not been finalized, the decision will be made via royal decree by the Council of Ministers following recommendations from an expert committee due by November 1.

Government spokesperson Elma Saiz guaranteed that the administration is working to ensure that the SMI remains exempt from Personal Income Tax (IRPF). However, while the wage increase itself is a government decree, maintaining the tax exemption requires a separate legal reform to be approved by Congress, which may not occur until the new legislature begins in 2027.

Proposals for the increase vary, with the Ministry of Labor considering a rise of approximately 5%, while labor unions are demanding a higher increase to recover purchasing power. The SMI has seen a 66% increase between 2018 and 2026, rising from 735.90 to 1,221 euros per month.