National minimum wage for 2023 published

The national minimum wage (SMI) is the minimum amount of money that a worker will receive, as a minimum and decent wage, for his or her working day.

In Spain, the working week is 40 hours, which are usually distributed as eight hours a day over five days a week, although this may vary depending on the employment contract and the collective bargaining agreement.
The amount is set by the Government after negotiation with the trade unions and the employers’ associations, at both the local and the overall level.
It should not be forgotten that, as its very name indicates, the SMI is a “minimum” arrangement; therefore, no other deal or collective bargaining agreement may reduce this amount.
What is the annual SMI in 2023?

The national minimum wage (SMI) has risen by 8% in 2023 to €1,080 gross per month in 14 payments. The annual wage is thus set at €15,120.
This increase is retroactive and will therefore apply from January 1, 2023.
Following this SMI increase, the amounts for 2023 are as follows:
• Per working day: €36.
• For casual and seasonal workers’ contracts: €51.15 per day.
• For domestic workers: €8.45 per hour worked.
As regards its application, the €1,080 monthly wage is paid where you receive 14 payments from your company.
If you receive 12, the remainder would be prorated across your monthly payslips. Therefore, if your extra payments are prorated, your 12 monthly payments would amount to €1,260.
Who will be affected by the 2023 SMI increase?
The SMI increase particularly affects workers who are not covered by a collective bargaining agreement, that is, those with the lowest incomes, who tend to be women and young people.
According to data from the Ministry of Labor and Social Economy, the SMI increase affects one and a half million employed persons (particularly in the agricultural and services sectors).
It should be added that, in fact, the increase affects all workers: even if their wage does not rise, all employees benefit indirectly through the items on their payslip that are calculated by reference to that figure (for example, the portion of wages that is protected and cannot be garnished).
Employees whose wages exceed €14,000 gross per year will not notice any direct change.
They may, however, benefit in the future, since the limits on the wages and severance payments paid by the Wage Guarantee Fund (Fondo de Garantía Salarial, FOGASA) are increased.
Effects on companies
Companies must increase any wages paid to their workers that are below the current SMI, taken as a whole and calculated on an overall basis. If the worker works part-time, the wage will be applied proportionally.
Salary supplements affected
The regulation sets out the conditions and limits for absorbing or offsetting the SMI increase in the annual calculation of wages. Accordingly, the revision of the minimum wage does not affect the amount of the professional wages received by the worker where, taken as a whole, they exceed the SMI.
The minimum wage of €1,080 will be supplemented by the salary supplements provided for in Article 26.3 of the Workers’ Statute (Estatuto de los Trabajadores) to which the worker is entitled.
Likewise, amounts corresponding to remuneration in the form of bonuses or production incentives will be taken into account. These payments may be offset against the income that workers receive for all items on an annual, full-time basis, where the regulations in force so permit.
As regards the 2023 minimum wage revision, it does not apply where the amount workers receive, or their annual total, exceeds the figure set as the annual SMI of €15,120.