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Spain Proposes 2026 Minimum Wage of €1,221 as Talks Continue

The government signals retroactive application from January 1 pending a final pact.

Overview

  • The Labour Ministry has tabled a 3.1% rise of €37 per month to €1,221 in 14 payments, which would total €17,094 a year if approved.
  • Officials estimate about 2.4 million workers nationwide and roughly 125,000 in Galicia would be affected.
  • Unions CCOO and UGT seek a 7.5% increase to around €1,273, while employers’ group CEOE proposes a 1.5% lift to about €1,202.
  • Advisers outlined two paths: a 3.1% hike if the SMI remains exempt from income tax or 4.7% if it becomes taxable, making tax status a pivotal issue.
  • Talks are ongoing with a decision expected in the coming weeks, and any approved rise would be paid retroactively with back pay from January 1.