Employers Propose Minimum Wage Increase Amidst Union Demands

In a recent development in Spain regarding minimum wage discussions, employer associations CEOE and Cepyme have made a proposal to the government to increase the interprofessional minimum wage (SMI) by 15% for 2026, raising it to €16,824 gross annually, or €1,202 gross per month across 14 payments. This proposal contrasts sharply with the unions' demands, which call for a significant 75% increase in the SMI. The unions, CCOO and UGT, have urged the government to set the minimum wage at €1,273 gross per month for the same payment structure, which includes taxation under income tax regulations. This disparity in proposed increases highlights the ongoing negotiation challenges between employers and workers' representatives. According to the employers, their proposed 15% increase aligns with anticipated raises for public employees and adheres to objectives outlined in the European Directive on Minimum Wages. The directive emphasizes the importance of setting a decent living wage, aiding in poverty reduction among workers, promoting social cohesion, and addressing the gender pay gap. CEOE and Cepyme conditioned their proposal on compliance with absorption and compensation rules as defined by the Workers' Statute. In a bid to influence the government's decision, both employer and union representatives presented their cases to an advisory expert committee that provides recommendations regarding SMI adjustments. The Ministry of Labor had previously tasked this group to propose two potential increases for the SMI for 2026—one considering income tax and the other without. One of the factors cited by the employers is that the proposed SMI is, in their view, consistent with data from the Active Population Survey (EPA), which indicates that the SMI has exceeded 60% of the average salary. They argue that using the EPA as a reference provides a more accurate picture, as the Wage Structure Survey (EES), traditionally used for determining the average salary, omits earnings from crucial sectors like agriculture, livestock, fishing, and domestic service, thus producing potentially inflated averages. Specifically, the CEOE asserts that the differences in reported wages can significantly distort the SMI, arguing that the EPA accounts for these labor-intensive sectors and reflects a more realistic measure of what constitutes a fair wage. They noted that if the SMI were calculated based on EPA data for 2025, it would amount to €15,760 gross annually—€816 less than the approved figure for the current year—and that the SMI presently could be as much as 49% higher than what is deemed appropriate. As both employers and unions brace for further discussions, the outcome of these negotiations could have a profound impact on wage standards and economic stability in Spain. The differing perspectives not only demonstrate the complexities of labor relations but also underline the importance of ensuring fair compensation that meets the needs of workers while considering the realities faced by employers. Related Sources: • Source 1 • Source 2