Minimum wage rises 5% in latest government deal

Labour
WRITTEN BY Lluís Palomas i Nogués
29 Jan, 2024 — 3 min
Minimum wage rises 5% in latest government deal

The SMI will rise from 1.080 euros in 2023 to 1.134 euros in 2024. Pending the official publication in the BOE in the coming days of the increase in the SMI, it is already advisable to update the tables and prepare the costs of the workforce.

We informed you that although a few weeks ago the SMI had been extended from 2023 to 2024, we were still waiting for the increase for this year.

Initially, it seemed that the increase of the SMI had to be 4%, but finally, the government and the trade unions have reached an agreement to raise the SMI by 5%.

Thus, the SMI will go from 1.080 euros per month for fourteen payments (fixed in 2023) to 1.134 euros per month for 2024.

The increases in the SMI affect all workers, especially those who do not have a collective agreement and have an impact on those who are receiving less income than stipulated.

SMI 2024

The minimum interprofessional wage is fixed at 1.134 euros gross per month in 14 payments (15.876 euros gross per year). This amount has been increased by 5% compared to 2023.

Therefore, the amount of the minimum wage for 14 payments in 2024 is as follows:

  • Minimum daily interprofessional minimum wage in 2024: €37,80/day.
  • Monthly minimum wage in 2024: €1.134/month.
  • Annual minimum interprofessional minimum wage in 2024: €15.876/year.

With the new increase in the SMI, workers will receive 5.573 euros more in the year than in 2018. Domestic workers who work by the hour will receive at least 8,87 euros per hour.

Is the minimum wage net or gross?

The minimum interprofessional wage refers to the gross wage 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 actually worked.

When will the increase of the SMI 2024 come into force?

The increase in the SMI will begin its processing with the publication in the Public Hearing and public information. Subsequently, the Royal Decree will be approved by the Council of Ministers.

The increase approved by the Council of Ministers will be applied retroactively to 1 January 2024.

Attention. The increase of the SMI 2024 will start to be effective once it is published in the BOE. The increase in the SMI will be applied retroactively from 1 January 2024. Therefore, in the event that the increase in the SMI is not published in time in the BOE for the January payroll, this increase will be charged retroactively in February.

How much has the minimum wage increased in recent years?

In the previous legislature, the government raised the minimum 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 increases 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.