Spain will increase the national minimum wage by 3.67% to 1,167 euros per month, said today the Minister of Labor Yolanda Diaz, the fourth increase of the minimum wage after the left-wing ruling coalition came to power in 2019.
The increase will be implemented retroactively from January 1, Diath told reporters after an agreement was reached with the unions on the increase.
The Spanish employers’ organizations did not support but have to comply with the increase, which is the latest step in the government’s plan to bring the minimum wage to 60% of the national average salary of 1,944 euros per month.
Describing the increase as “a very important milestone”, Diath said competition with other countries in reducing wages in the past had led to a weak economy and precarious businesses and was deeply unfair.
“We want to compete on the productivity axis and not on the low wage axis,” he said.
Under the new agreement, Spain is the seventh country in terms of the minimum wage in Europe, according to European Union figures, well above neighboring Portugal which offers 705 euros per month, but behind France which gives 1,603 euros.
Last week, Spain’s fragmented parliament approved the government’s labor reform by just one vote, overturning the corporate-friendly reforms of the previous conservative government, giving unions more power to negotiate collective bargaining.
SOURCE: AMPE
Source: Capital
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