The Government has reached an agreement to raise the Minimum Interprofessional Wage (SMI) for 2024 by 5%, to 1,134 euros per month. The SMI will thus increase by 54% from 2018.
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Minimum Interprofessional Wage
Poster of the increase in the Minimum Interprofessional Minimum Wage
With the new increase 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 per hour.
What is the Minimum Interprofessional Wage?
It is the minimum amount of pay that a worker receives on the legal working day. It is regulated annually by the Government, after consultation with the most representative trade union organisations and employers’ associations. The minimum wage only includes monetary remuneration.
What is the amount of the Minimum Interprofessional Wage in 2024?
On 27 December 2023, the Council of Ministers agreed to extend the minimum wage for 2023, set at 1,080 euros gross per month in 14 payments (15,120 euros gross per year), until the new increase is approved.
For 2024, the Government has agreed to a 5% increase in the SMI, previously consulted under 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.
The increase in the minimum wage will begin to be processed with the publication of the Public Hearing and Public Information. Subsequently, the Royal Decree will be approved by the Council of Ministers.
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 workers?
In the case of domestic workers who work by the hour, the minimum wage will be 8.87 euros per hour effectively worked.
Does the increase in the minimum wage have a retroactive effect?
Yes, the increase approved by the Council of Ministers will be applied retroactively to 1 January 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 euros 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 euros per month in 14 payments, i.e. a total of 756 euros per year.
What are the objectives of the SIM increase?
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 bringing the minimum wage to 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 concerning the cost of living, especially in the current price situation.