Minimum Interprofessional Wage: what is it, how much does it go up and who does it benefit?

Feb 7, 2024 | Current affairs, Featured, Revista Lloseta, Thursday Daily Bulletin, Tradition

The Minimum Interprofessional Wage (SMI) for 2024 stands at 1,134 euros per year distributed in 14 payments, accumulating an increase of 54% since 2018. Some two and a half million workers will benefit from this measure.

With the new rise in the SMI, workers will receive 5,573 euros more per year than in 2018. Domestic workers who work by the hour will receive, at least, 8.87 euros for each hour.

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Minimum Interprofessional Wage

What is the Minimum Interprofessional Wage?
It is the minimum remuneration the worker receives on the legal working day. It is regulated by the Government on an annual basis, after consultation with the most representative trade unions and business associations. The minimum wage includes only the remuneration in cash.

What is the amount of the Minimum Interprofessional Wage in 2024?
The Council of Ministers approved on February 6, 2024, the increase of the Minimum Interprofessional Wage for 2024 to 1,134 euros distributed in 14 payments, following the agreement with the trade union organizations.

This is an increase of 5% of the SMI, previously consulted by the provisions of Article 27 of the Workers’ Statute.

This figure represents an increase of 54 euros per month in 14 payments, i.e., a total of 756 euros per year.

Is the Minimum Interprofessional Wage net or gross?
The Minimum Interprofessional Wage refers to the gross salary of workers. The 1,134 euros per month in 14 payments represents the total pay, and if the extra payments are prorated, it will be 1,323 euros per month in 12 payments.

What is the minimum wage for domestic employees?
In the case of domestic employees working on an hourly basis, the minimum wage will be 8.87 euros per hour effectively worked.

Does the increase of the SMI have retroactive effects?
Yes, the increase approved by the Council of Ministers will be applied retroactively to January 1, 2024.

How much has the SMI increased in recent years?
In the previous legislature, the Government raised the Minimum Interprofessional Wage from 735 euros to 1,080 in 2023, an increase of 47%.

With the increase in the SMI agreed for 2024, the SMI increased by 54% from 2018. This figure represents an increase of €54 per month in 14 payments, i.e. a total of €756 per year.

What are the objectives of raising the minimum wage?
To meet the right to a fair and sufficient remuneration that provides working people and their families with a decent standard of living.
To achieve the objective of placing the SMI at 60% of the average wage, thus complying with the provisions of the European Committee of Social Rights and the Executive’s legislative commitment.
To guarantee the purchasing power of wages in the face of the cost of living, especially in the current price situation.