THE Spain will increase the national minimum wage by 3.67% to 1,167 euros per month, said today the Minister of Labor Yolanda Diaththe fourth increase in the minimum wage after the left-wing ruling coalition came to power in 2019.
The increase will be implemented retrospectively from January 1stDiath told reporters after the agreement reached with the unions for the increase, as broadcast by Reuters and rebroadcasts the APE BPE.
The Spanish employers’ organizations did not support but will have to comply with the increase, which is the latest step in the government’s plan to bring the minimum wage to 60% of their national average salary 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.
Above Portugal, below France
With 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 labor reform of the government by just one vote, overturning the business-friendly reforms of the previous conservative government, according to the same sources. This regulation gives more power to the unions, in terms of negotiating collective agreements.
Source: News Beast
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