[Spain] Minimum wage to increase by 8% as elections approach

The Spanish government is set to approve an 8 per cent rise to the national minimum wage this election year, Reuters reports.

Socialist Prime Minister Pedro Sanchez announced the increase to lawmakers on January 31.

The wage increase will be the fifth under Sanchez's premiership. It would reportedly represent an additional 93 euros ($100) per month, bringing the new minimum wage to 1,259 euros in 12 instalments per year.

"In 1999, a Spaniard needed to dedicate four annual salaries to buy an apartment. Today, he or she needs to spend more than twice as much, eight annual salaries," Mr Sanchez said as he introduced the measure in the upper house.

In a statement, the Labour Ministry said the minimum wage had increased by 47 per cent in the last five years.

The move reportedly comes after average inflation hit 8.4 per cent in 2022. It is part of a plan agreed upon under the coalition deal with the left-wing Unidas Podemos to boost the net minimum wage to 60 per cent of the country's average monthly pay by the end of its four-year term.

Labour Minister Yolanda Diaz of the Unidas Podemos responded to the news on Twitter. "Thanks to the agreement with trade unions, we are making effective one of the major commitments of the legislature: to reach at least 60 per cent of the average wage." 

Earlier on January 31, the government reportedly met union representatives to inform them of the rise. The main employers' associations reportedly did not attend the meeting and said they opposed the increase after advocating a hike of just 4 per cent. They would still have to comply with the increase.

Unai Sordo - secretary general of Spain's largest union CCOO - said around 2.5 million people would benefit from the measure; especially women, young people, those with temporary contracts and workers in the service and agriculture sectors.

Spain reportedly has local elections this May and a general election at the end of the year.

Source: Reuters

(Quotes via original reporting)

The Spanish government is set to approve an 8 per cent rise to the national minimum wage this election year, Reuters reports.

Socialist Prime Minister Pedro Sanchez announced the increase to lawmakers on January 31.

The wage increase will be the fifth under Sanchez's premiership. It would reportedly represent an additional 93 euros ($100) per month, bringing the new minimum wage to 1,259 euros in 12 instalments per year.

"In 1999, a Spaniard needed to dedicate four annual salaries to buy an apartment. Today, he or she needs to spend more than twice as much, eight annual salaries," Mr Sanchez said as he introduced the measure in the upper house.

In a statement, the Labour Ministry said the minimum wage had increased by 47 per cent in the last five years.

The move reportedly comes after average inflation hit 8.4 per cent in 2022. It is part of a plan agreed upon under the coalition deal with the left-wing Unidas Podemos to boost the net minimum wage to 60 per cent of the country's average monthly pay by the end of its four-year term.

Labour Minister Yolanda Diaz of the Unidas Podemos responded to the news on Twitter. "Thanks to the agreement with trade unions, we are making effective one of the major commitments of the legislature: to reach at least 60 per cent of the average wage." 

Earlier on January 31, the government reportedly met union representatives to inform them of the rise. The main employers' associations reportedly did not attend the meeting and said they opposed the increase after advocating a hike of just 4 per cent. They would still have to comply with the increase.

Unai Sordo - secretary general of Spain's largest union CCOO - said around 2.5 million people would benefit from the measure; especially women, young people, those with temporary contracts and workers in the service and agriculture sectors.

Spain reportedly has local elections this May and a general election at the end of the year.

Source: Reuters

(Quotes via original reporting)