Spain’s minimum wage announcements

Spain’s minimum wage announcements

Updated 10 December 2016: The Government has approved a rise of 8% in the minimum wage for 2017, which will therefore increase from the current €655.20 per month to €707.60. The news, which was announced last week, took some by surprise given the absolutely minimal increases or even freezes of the last few years. Even so, the new minimum wage has been denounced as insufficient by unions, some of whom had been arguing for a rise to €800 a month. The new rates as now confirmed will come into force on 1 January and will require employers to pay no less than €707.6 a month for 14 payments a year (two double payments), meaning a minimum annual salary of €9.906.40 for full-time employees. There are different calculations for those in part-time, temporary or home work: click on the link above for details.

Updated 29 December 2015: The Government has approved a rise of 1% in the minimum wage for 2016, which will increase from €648.60 to €655.20, representing an annual wage of €9,172.80 (link). For homeworkers or those paid by hourly rate, the minimum wage will be €5.13 per hour. Temporary or seasonal workers who are contracted for less than 120 days will have a minimum wage of €31.03 per day. Unions have criticized the increase on the grounds that it provides workers with only €7 more a month, which they say goes nowhere near covering rising costs, but this is the nevertheless the biggest increase for some time: last year’s rise was just haf a percent, and in 2014 the minimum wage was frozen at 2013’s level.

Updated 26 December 2014: The Spanish Government is to raise the minimum wage in 2015 by half a percent, equivalent to an increase of €3.30 a month. This takes the minimum wage from €645.30 to €648.60 a month, assuming the traditional 2 extra monthly payments, and so an annual wage of €9,080.40, as opposed to the €9,034.20 it has been for the past two years  The government recognized that the rise is “modest”, but said that it was an improvement on last year when the amount was frozen, and that it was now at the rate of inflation or better.

Updated 26 December 2013: The Spanish Government is to freeze the minimum wage in 2014 at 2013’s rates, which will mean €645.30 monthly, an equivalent of €21.51 per day, and equating to €9,034.20 p.a. This assumes the tradition of 14 monthly payments, equating to an actual monthly wage of €752.85. For homeworkers or those paid by hourly rate, the minimum wage will be €5.05 per hour. Temporary workers will have a minimum wage of €30.57.

This is the second year that this Government has frozen the minimum wage – they did the same in 2012 just after coming into power. Unions are expected to object to the proposals on the grounds that the measure is an effective reduction in workers’ pay, but they have been given virtually no time to submit their complaints: the measure is expected to be approved tomorrow morning in Cabinet.

Updated 9 January 2013: The minimum wage for 2013, as published in the Real Decreto 1717/2012 of 28 December 2012, has increased 0.6% from 2012. The new monthly minimum wage is €645.30, an equivalent of €21.51 per day, and equating to €9,034.20 p.a. For homeworkers or those paid by hourly rate, the minimum wage is €5.05 per hour. Temporary workers will have a minimum wage of €30.57.

As Mark Fradley says in the comments below, “if one was receiving €645.30 p.m they would get 14 monthly payments, a summer and winter extra wage thus spread out over the year the minimum take home monthly wages are €752.85 which equates to the minimum annual wages of €9,034.20 its an extra €107.55 p.m”.

Updated 28 December 2011: The new conservative Government led by Mariano Rajoy has frozen the minimum wage for 2012. It will remain at 2011’s rate of €641 per month despite requests from Unions to raise it in line with inflation. The freeze on minimum pay rates will be approved by the Cabinet on Friday.

Original post 30 December 2010: Spanish PM José Luis Rodríguez Zapatero has announced that the minimum wage will rise by 1.3% for 2011, to €641 a month. In 2010, it was set at €633.30. ZP said that the rise shows the govermnent’s understanding of the difficulties workers face in the present economic climate, and the effort the Government was making to help them, regardless of how difficult it was to raise the minimum wage for the coming year.

The minimum wage has risen some 37% since 2004, increasing from €460.50 a month to the €641 now approved for 2011. The new rate equates to €8,979.60 per annum, an equivalent of €21.38 per working day. For casual or temporary staff, defined as those who work less than 120 days for the same business, the minimum wage is €30.39 per working day, the higher daily rate being some compensation for the lack of long-term contracted employment. LO

19 Comments

  1. Janet,

    Thanks for the information on minimum wages in Spain.

    I would like to see how somebody is supposed to live on 645 Euros per month.

    These are Paupers wages, just the way that those in control intended it to be.

    For example my rent is about 430 Euros and landline phone is 60 Euros and fuel, mobile phone and cigarettes is 100 Euros. So a months food and clothing, medical charges etc must be found from the remaining 45 euros? Obviously it does not compute. No wonder so many people are not going out anymore, and bars and live music venues are no longer frequented by the unemployed and musicians like me.

    It’s plain that the cost of rented accomodation is the crippling outgoing for most people monthly. Landlords take note !

  2. Author

    Although not announced yet, it is being said to be quite likely that the minimum wage will be frozen at 2013 levels for 2014.

  3. Janet you should add, that if one was receiving €645.30 p.m they would get 14 monthly payments, a summer and winter extra wage thus spread out over the year the minimum take home monthly wages are €752.85 which equates to the minimum annual wages of €9,034.20 its an extra €107.55 p.m

  4. Author

    Thanks Mark, I’ve just added it to the main text above.

  5. Do you get taxed on the minimum wage. Will you get all 645 or less with a tax reduction?

  6. Author

    No, there are personal allowances making a threshold of around €5,000 or so, and then a slight reduction in the rate (currently 24,75%) for those earning between that and around €13.000.

  7. What contributions does an employer have to make to employees wages for example in England employers have to contribute to national insurance and now 3per cent to pensions.

  8. Author

    As far as I’m aware, an employer pays a sum equivalent to around 30% of the employee’s gross pay to the social security. From that gross pay employees themselves also make a contribution but that’s around 5%. This is something that gestors, asesors, or accountants will know accurately from doing payrolls regularly, but a calculation using that rough figure won’t be far out.

  9. Does the minimum wage of €5.05 refer to hairdressing and beauty industry?

  10. Author

    yes, it’s a national minimum wage.

  11. Hey, I was wondering and maybe you can help me on this one. I’m an English teacher in Ciudad Real and soon my hours will drop dramatically due to the summer season. Will I still receive the minimum wage, because I don’t fully understand the whole procedure and my job is very tight lipped about it all. Any help or Information would be appreciated.

  12. Author

    Hi Mark, and I’m afraid I don’t know. I’m sorry, but you are best off seeking advice from an employment lawyer.

  13. Thank you for replying so quickly, I greatly appreciate it. I will do what you have suggested,

    Best Regards,

    Mark

  14. Can anyone advise me on part time staff hourly rates?

  15. Author

    I believe the minimum rate for those paid hourly is €5.05 per hour.

  16. Hi Janet, does that apply for a shop assistant too? I have heard that the shop assistant minimum salary is EUR 850 something. Or is that for all the positions ?

  17. Author

    That’s the national minimum wage … no-one in full-time employment can be paid less than this.

  18. What ca you do if your employer doesn’t pay the minimum amount?

  19. Author

    You can go to see an employment lawyer. There are several who specialise in employment matters.

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