Spain’s Labour Ministry is seeking to approve the 2027 minimum wage before the November 29 general election, aiming to prevent the decision from being left to a caretaker government or its successor. The ministry plans to open a public consultation on its proposal in the coming hours, likely on Thursday, according to sources involved in the negotiations cited in the report.

The increase is expected to be around 5%. A panel of experts recommended a 4.9% rise, which would bring the minimum wage to €1,281 gross per month over 14 payments. The ministry has not yet specified whether it will adopt that figure or make the increase conditional on the wage remaining exempt from personal income tax. The government has said it plans to introduce a new tax deduction for that purpose.

The timetable leaves little room for negotiations. The public consultation must remain open for 10 working days, and the ministry wants the measure to reach the Cabinet before the election. At a meeting on Wednesday with unions and employers’ groups, the ministry did not present a final figure, according to sources familiar with the discussions.

The unions are seeking a 7% increase and say they will not lower that demand. CC OO leader Unai Sordo said the government must decide whether to follow the experts’ recommendation or the unions’ position. The employers’ groups, CEOE and Cepyme, did not propose an increase at the meeting and argued that the issue should be discussed after the election.

The accelerated process makes a formal agreement with the unions unlikely. If the ministry proceeds without their support, it would be the first time in nearly seven years as minister that Yolanda Díaz has not agreed a minimum-wage increase with the major trade unions. The unions have backed every increase since 2018, while employers’ groups have supported one during Díaz’s tenure.

The unions have also linked an agreement to changes in the rules governing the absorption of pay supplements, which would prevent employers from offsetting minimum-wage increases by removing other payments. The report says the ministry does not plan to approve that reform before the election. A general strike supported by CC OO and UGT is scheduled for November 11, adding to the tense backdrop for talks.

Three regular Cabinet meetings are scheduled before the election: November 10, 17 and 24. An extraordinary meeting could also be held.

Sources: El País Economía.