The minimum wage will rise to 1,080 euros after the 8% increase announced by the government, equivalent to 15,120 euros annually.
The agreement between the Ministry of Labor and the unions was closed without the support of the employer
The government raises the minimum wage for professionals. As announced by the head of government, Pedro Sánchez, in the plenary session of the Senate; The Ministry of Labor and the UGT and CC.OO unions have reached an agreement to raise the minimum wage to 15,120 euros per year for a 40-hour work week, which is equivalent to 1,080 euros per month, divided into 14 payments. This increase was not supported by employers who did not attend the meeting.
The intention of the Sanchez-led executive was to close the rally before the end of January. In the end, it means 8% increase from 1,000 euros for the previous standard, Effective since June last year and also divided into 14 batches. The aim of the Labor Party is to continue negotiating with the main unions and business associations about how much SMI will rise in 2023, since the executive’s commitment is that it, at least, amounts to 60% of the average Spanish salary.
Since 2018, the minimum salary for professionals has increased from 735 euros per month to the current 1,080 euros. This assumes a 47% increase in just five years. From January 2018 to December 2022, the consumer price index increased by 15.5%, according to data provided by the National Institute of Statistics. This means that the rises in SMI have managed to outpace the inflation of the Spanish economy over the past five years.
How much will you pay income tax?
A 30-year-old worker without family responsibilities who earns exactly the minimum wage would pay €793 (5.25%) per annum in personal income tax and €290 in social security contributions, for a total of €1,083 in taxes. the year. This means that His net salary will be €14,036, which equals €1,002 divided into 14 payments.. In addition, the company must contribute to the social security of this worker, with a consequent monthly payment to this body.