The Ministry of Labor also convened a commission of experts this year, tasked with recommending how much the interprofessional minimum wage (SMI) should increase in 2026 to match 60% of the average wage, so that the minimum wage does not lose purchasing power or rate of increase compared to the rest of salaries. Last year, once the position of these experts was known, the ministry’s negotiations with employers and unions began. This time, unlike then and what happened on previous occasions, the workers’ representatives anticipated this report and have already verbalized their position regarding this negotiation. UGT and CC OO said on Tuesday that the SMI should grow by 7.5%, up to 1,273 euros gross per month divided into 14 installments.
The unions’ proposal takes into account the possibility that this level of remuneration will be taxed next year, unlike what has happened in recent years. According to the unions’ calculations, if the lowest possible salary was no longer exempt from Irpef, to continue to employ 60% of the average net salary, that 7.5% would have to increase. Workers’ representatives argue that the time has come to tax SMI and therefore defend an increase in these features.
The minimum wage has grown by 61% since 2018, the year Pedro Sánchez arrived in Moncloa. At the time, the lowest possible salary was 736 euros gross per month in 14 installments. After the 2025 update, it is 1,184 euros gross per month, reaching, according to Government calculations, 60% of the average salary of Spaniards.
There are several official statistics that determine the estimate of how much the SMI should increase. One of the main ones is the Quarterly Labor Cost Survey (ETCL), prepared by the INE and whose latest data indicates that companies spend 2.7% more on salaries compared to last year. Taking into account total labor costs, the increase is 3% year-over-year compared to the second quarter. Sources close to the decision indicate that the most likely thing is that the expert commission will wait until it knows ETCL’s third quarter data to issue its recommendation taking it into account. The INE will publish these statistics on December 16.
Together with the ETCL, the wage statistic with the smallest time difference is that of collective agreements. Unlike the previous one, this one does not measure the evolution of the wage bill itself, but rather the variation of the wage scales included in collective agreements. According to the latest available data (October), these agreed payments increased by 3.5%. Taking into account only the agreements signed during the year, the increase rises to 4.2%.
The other fundamental data in salary negotiations is inflation, which according to the latest interannual data, referring to October, stands at 3.1%.
Taxation yes or no
One of the peculiarities of this year’s assignment to the experts is that the Ministry asked them two increase scenarios: which one would reach 60% of the SMI if it were taxed and which one if it were not. This is one of the usual clashes in recent years between the Ministry of Finance and the Ministry of Labour. Given that the incidence of SMI is increasing among employees, due to the sharp increase in recent years, more voices argue that this level of remuneration should no longer be exempt from personal income tax.
Yolanda Díaz’s department anticipated the dilemma by calling for a dual approach from experts. Although the second vice president made it clear that she prefers that SMI not be taxed, she said that the decision rests with the ministry of María Jesús Montero. This position clashes with that of recent years, in which Labor has staked its claim in the debate.
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