Overview
- Spain’s Council of Ministers validated the 3.1% rise to €1,221 a month in 14 payments, equal to €17,094 a year, applying it from January 1.
- The Finance Ministry raised the IRPF deduction to €591 so minimum‑wage earners have a 0% effective rate, tapering relief up to about €20,000 in annual income.
- Employers must include January back pay in February payrolls, adding roughly €37 for 14‑pay schemes or €43 for 12‑pay schemes, with proportional amounts for part‑time staff.
- Employer groups CEOE and Cepyme opposed the deal, and the government is preparing a separate rule to curb the absorption of pay supplements.
- The government estimates around 2.5 million people will benefit, especially women and younger workers, while statutory public servants are excluded from the SMI framework.