Spain’s Ministry of Labour has proposed raising the minimum wage by 5.3% in 2027, to €1,286 gross per month paid over 14 instalments, or €18,004 a year. The draft, published for public consultation, represents an increase of €65 a month from the current €1,221 rate.
The proposal exceeds the 4.9% increase recommended by a panel of experts, whose central scenario would have added €60 a month. The panel’s recommendation was linked to October’s year-on-year inflation rate. The ministry has not explained the four-tenths-of-a-percentage-point difference between its proposal and the experts’ figure.
Labour consulted unions and employer groups on Wednesday but did not reach agreement with them. The proposed increase is below the 7% sought by the unions. Employers CEOE and Cepyme argued that the decision should be left until after the general election on November 29, without proposing a specific amount.
The consultation period for submissions runs until November 16. The government could then approve the increase at a cabinet meeting on November 17 or 24, according to the report. Labour says it wants the new rate settled before the election rather than left to a caretaker government or its successor.
The unions are not expected to formally endorse the proposal, which would mark the first such outcome since Yolanda Díaz became Labour minister. They cite both the size of the increase and unfulfilled government commitments, including changes to rules on offsetting wage supplements against minimum-wage rises. A planned strengthening of working-time records could still reach the cabinet before the election.
The government is required to consult representative unions and employer associations, but the law does not require it to reach an agreement with them. The minimum wage is set by decree and does not need parliamentary approval.
The experts’ recommendation aimed to keep the minimum wage at 60% of the average net salary while protecting its purchasing power. The government has also indicated that the minimum wage will remain exempt from personal income tax next year. The proposed increase would raise the minimum wage’s purchasing power if inflation does not accelerate in the coming months.
Sources: El País Economía.