Minimum Interprofessional Salary 2026: official update and practical implications

On February 18, 2026, Royal Decree 126/2026 was published in the Official State Gazette, setting the new Minimum Interprofessional Salary (SMI) for 2026 and expressly regulating the compensation and absorption regime on an annual basis.

The regulation establishes a minimum wage of €1,221 gross per month in 14 payments, with retroactive effect from January 1, and requires companies to review payrolls and salary structures in accordance with legal criteria.

What is the new minimum wage for 2026?

Following its approval, the SMI is set at €1,221 gross per month, distributed in 14 payments. This represents an increase of 3.1% compared to 2025.

In annual terms, this figure is equivalent to €17,094 gross. This means €37 more per month and €518 more per year for those who were at the wage threshold in 2025.

The update requires payrolls already paid this year to be reviewed and differences to be regularized retroactively.

Why is this update to the SMI important?

The minimum wage is not just a financial figure: it is a key indicator of social protection, purchasing power, and labor cohesion.

Updating it every year is a measure that:

• Strengthens the purchasing power of nearly 2.5 million people.
• Has a direct impact on temporary contracts and part-time work, including domestic workers and casual jobs.
• Establishes that this minimum wage will not be subject to personal income tax, ensuring that the increase is effective in net terms.

Compensation and absorption: what does the Royal Decree establish?

The Royal Decree regulating the SMI 2026 develops the provisions of Article 27.1 of the Workers' Statute on compensation and absorption on an annual basis.

The general criterion is clear: the revision of the SMI does not affect the structure or amount of professional salaries when, as a whole and on an annual basis, they are higher than the new minimum wage.

The decree specifies that the revision must be carried out on an overall annual basis, not month by month.

Income received for all salary items established in the following may be taken into account:

• Legal or conventional regulations.
• Current collective agreements.
• Arbitration awards.
• Individual employment contracts.

If the total annual professional salary exceeds €17,094, the principle of compensation and absorption may apply.

When should salaries be increased?

Only those salaries that, on an annual basis and for full-time work, fall below this threshold should be increased.

In these cases, they must be raised to at least €17,094 per year.

The rules or agreements in force continue to apply on their own terms, with the only modification necessary to guarantee this annual minimum.

What does this mean for companies?

In view of the increase in the 2026 minimum wage, it is advisable to:

• Audit the salary structure of categories close to the minimum wage.
• Review the applicable collective agreement.
• Analyze the remuneration structure on an annual basis and not just on a monthly basis.
• Regularize payrolls with legal criteria and adequate documentation.

It is not just a matter of updating a figure, but of reviewing how the salary structure is configured within the organization.

Conclusion: the real impact of the 2026 minimum wage

The increase to €1,221 is significant. But the real change lies in the desire to ensure that this increase is effective and is not diluted within existing supplements.

This shifts the focus from the figure to the technical criteria.

For companies, the message is clear: it is not just a matter of updating payrolls, but of legally analyzing the salary structure.

And this is where rigorous labor advice makes all the difference.