A group of specialists advising Spain’s Labour Ministry has recommended raising the statutory minimum wage by 4.9% in 2027, in line with price developments. Its report also urges the government to use measures beyond the minimum wage to improve working conditions and lift pay more broadly.
The ministry is presenting the report to unions and employers on Wednesday. The specialists say they are concerned that minimum-wage increases are not spreading more strongly across the wider salary structure, and that some experienced or moderately qualified workers may end up earning close to the statutory floor.
The report describes a growing concentration of workers in a narrow pay band around the minimum wage, a pattern known as “bunching.” It warns that the minimum wage should serve as the main reference point for workers without experience or qualifications, rather than setting pay for more experienced employees as well.
The experts cite research on the 2017 and 2019 minimum-wage increases, which found pay rises extending beyond workers directly affected, including above the median wage. Collective bargaining appeared to help transmit those increases through revised wage tables, but the report says the resulting upward effect was limited.
The specialists also warn that minimum-wage rises may have left some collectively negotiated wage floors below the statutory minimum and therefore less relevant. They call for greater use of social dialogue, collective bargaining and training, rather than relying on increases to the minimum wage alone.
The report also highlights positive effects: the experts say the minimum wage has reduced wage inequality and improved the relative position of poorer households. They note that employment has developed positively in recent years despite substantial increases to the minimum wage, and consider Spain’s economic outlook compatible with another rise.
Sources: El País Economía.