Monthly minimum wage in Spain raised to €1,134 in 2024

Spain’s monthly minimum wage has surged to €1,134 (US$1,214), effective January 1, 2024, divided into 14 payments, following approval from the Council of Ministers.

This hike represents a 5% increase from the 2023 minimum wage (€1,080/US$1153) and a substantial 54% jump from the 2018 rate (€735/US$784), resulting in a rise from €36 (US$38) to €37.80 (US$40) per day.

The increase is anticipated to benefit approximately 2.5 million workers, and is poised to enhance the living standards of employees, particularly women.

Moreover, the government also greenlit a 0.5% uptick in public employee salaries and reduced personal income tax deductions for low-income earners.

Increase Background:

• The minimum wage hike follows negotiations with major trade unions, Comisiones Obreras “Workers’ Commissions” (CCOO) and Unión General de Trabajadores “General Union of Workers” (UGT).
• While the government and unions agreed to the increase in mid-January, it wasn’t endorsed by the Confederación Española de Organizaciones Empresariales “Spanish Confederation of Business Organizations” (CEOE), citing potential negative impacts on job creation.
• Instead, the CEOE proposed the new 3-4% increase in the minimum wage along with measures to bolster employment in sectors like agriculture.
• The Council also introduced regulations for transparent and consistent working conditions, prohibiting on-call work and zero-hour contracts. 
• Additionally, though not implemented, there were calls for a reduction in working hours without compromising pay, advocated by the second vice-president.

Additional Information:

• Between 2018 and 2023, Spain witnessed a significant €344.1 (US$367) monthly wage increase, equivalent to a 46.8% rise.
• In 2019, the minimum wage in Spain stood at €745 (US$795).
• Spain’s wage income lags 19 points behind the European Union average, underscoring the need for broader wage increases beyond just the minimum wage.
• In 2023, a 2.5% GDP growth was seen in the country, surpassing expectations, as per data from Instituto Nacional de Estadística “Spain’s National Statistics Institute” (INE).