A group of academics, union representatives and government officials advising Spain’s Labour Ministry has recommended raising the statutory minimum wage by 4.9% in 2027. The proposed increase would lift the current rate of €1,221 gross per month, paid in 14 instalments, to €1,281—a rise of €60 a month.
The recommendation is intended to preserve the minimum wage’s purchasing power, using the 4.9% annual inflation rate reported in the preliminary figure for October 2026. The advisers also calculated that a smaller increase of 2.7%, to €1,254 a month, would bring the gross minimum wage to the level they estimate is needed for net pay to equal 60% of the average net salary. They warned that this lower figure would not keep pace with prices.
The report’s recommendation assumes that the minimum wage remains exempt from personal income tax. The government has indicated that it plans to introduce another tax deduction so minimum-wage earners do not pay income tax, but has not specified when it will do so.
The proposal is a starting point for negotiations between the government, unions and employers; it does not determine the final increase. Unions are seeking a 7% rise, while employers have criticised the timetable and have not proposed their own figure for 2027. The report says the advisory group’s recommendations have often shaped the Labour Ministry’s position in previous negotiations.
The government is aiming to approve the increase before the November 29 elections, earlier than the usual pattern of setting the new rate around February. The timetable has drawn criticism from the opposition and employers. The report also notes that unions have made further demands linked to any agreement, including changes to working-time monitoring and rules on how companies apply minimum-wage increases to existing pay supplements.
Sources: El País Economía.