“A rich country can’t … The reality is this: the rise in the minimum wage has not led to an increase in redundancies, quite the opposite. The times of wage containment are beginning to be left behind in Spain. France. Wages accumulate six consecutive quarters with increases of more than 1%, which means the greatest advance since 2011, but is that they also rise without generating inflation and with strong job creation, which reinforces the increase. However, the states have the power to increase the federal minimum wage as 29 of them did. Between 2015, when the Socialists took power, and 2019, the minimum wage increased 14%, from 505 to 600 euros, way below neighboring Spain’s 1,050 euros. Bloomberg - Spain’s top government officials are split over whether to increase the minimum wage for 2021, Labor Ministry Yolanda Diaz said. The new minimum wage came into force on January 1st, rising from 14 monthly payments of €735.90 per year to €900 for those in full-time employment. The minimum wage was frozen in 2012, increased with 0.6% in 2013 and again frozen in 2014. Close. MADRID, Spain — The government approved a raise in minimum wages in Spain that will range from $513 to $1,130 per month to support its working, low-income households amid the economic crisis brought upon by COVID-19. Spain has a government-mandated minimum wage. Wage Growth in Spain averaged 1.66 percent from 1978 until 2020, reaching an all time high of 9.03 percent in April of 1988 and a record low of -7.18 percent in November of 2012. While Greece has raised its minimum wage by 11%, Spain has raised its €736-a-month minimum wage by 22%, to €900. The annual national minimum wage per day in Spain stood at 31.6 euros in 2020. “It wouldn’t make … Broadly speaking, the rise of the SMI seeks to “improve the living conditions” of workers, benefiting some two million people. The employer is responsible for collecting all contributions; as a result, they deduct the amount for the Spanish income tax (IRPF) and social security contributions due under the law. The increase will take monthly minimum pay to 641.50 euros (£551; $851). u/thomanou. Increasing the minimum wage to $20 over five years will have less of an impact than an increase in one year. Specifically, the SMI increased by 3.9% in cumulative terms between 2009 and 2015 while average and median wages grew by 5.6% and 10.5%, respectively, over the same period. Posted by. The minimum salary in Spain thus stands at 950 euros per month in 14 payments, i.e. 281. Spain's minimum wage will jump by 22% in 2019 - the largest annual increase in more than 40 years. 2019 minimum wage (14 payments): €900.00 per month; 2018 minimum wage (14 payments): €736.00 per month; 2017 minimum wage (14 payments): €707.60 per month; More than 5.5 million people in Spain earn the Spanish minimum wage. Some countries may have a very complicated minimum wage system; for example, India has more than 1202 minimum wage rates. 2 Minimum wages in 2019: Annual review Minimum wages in the EU, what has changed? £ Minimum wage workers in almost all EU countries saw an increase in their pay in 2019. This entailed an increase of 22 per cent—the highest in more than four decades in Spain and the most significant among EU countries in 2019. The yearly minimum wage of 12600 euros is arrived at by multiplying monthly wage by 14. No worker in Spain should be paid less then this minimum … This is a list of the official minimum wage rates of the 193 United Nations member states and former members of the United Nations, also including the following territories and states with limited recognition: Northern Cyprus, and Kosovo and other independent countries. For instance, for Spain, where it is paid for 14 months a year, the minimum wage is calculated as follows: (EUR 900 x 14) / 12 = EUR 1,050. The minimum wage per day increased very subtly between 2008 and 2016, growing only a total of 1.84 euros in eight years. There was also a significant change in Greece, which increased its minimum wage by over 10%, the first increase since 2012. Minimum wages in Spain stood at EUR 1,050 per month in 2020. Eurostat provides national minimum wages at monthly rates, meaning that, when the minimum wage is paid for more than 12 months per year, data is adjusted to take these payments into account. Despite ongoing talks in Catalonia to create a minimum wage in the region, Catalonia still doesn’t have one. The reforms will make the biggest difference for women, who perform the bulk of part-time and temporary work. £ The proportion of those earning the statutory minimum wage or less stood at 7.2% in the median EU Member State in 2016, with considerable variation between countries. Spain’s minimum wage is also in the lower band at an international level. 13,300 euros per year, an increase of 5.5% compared to 12,600 euros per year in 2019. A minimum wage is the lowest remuneration that employers can legally pay their workers—the price floor below which workers may not sell their labor. SPAIN'S government has increased the minimum wage in line with its pledged scale of rises back in 2018, which aims for it to reach the European Union requirement of 60% of the national average wage … Further, the impact can vary depending on how rapidly it is increased. Spain's minimum wage rate is â ¬764.40 per month in 12 payments,â ¬655.20 per month in 14 payments,applicable to all workers. Spain experienced a significant 22% increase to its minimum wage. Given the size of the Spanish economy, this is possibly the most significant increase on European level since Germany introduced a minimum wage in 2015. The trade unions have already stated in a reaction that the increase is far from what is necessary to keep pace with the purchase power that has been lost since the start of the crisis. The impact of a higher minimum wage will depend on how much it is increased. The minimum salary in Spain thus stands at 950 euros per month in 14 payments, which is essentially 13,300 euros per year, an increase of 5.5% compared from 12,600 euros which was received last year. As Euro Weekly News understands, not taking into account the effect on part-time workers, the increase … 1 year ago. Spain to increase minimum wage next week by 22 percent. That totals to around a minimum … Wages in Spain increased 1.43 percent in October of 2020 over the same month in the previous year. Spain is embarking on a major economic experiment: A 22 percent jump in the minimum wage that’s ignited a high-stakes debate about how it will impact the economy. Loss of purchasing power "A rich country cannot have poor workers," the PM said, announcing the biggest hike for decades. If that sole parent were working 40 hours per week, the $3.50/hour minimum wage boost would increase take home pay by $113.55 per week – the equivalent of … But the reality goes even further. Most countries had introduced minimum wage legislation by the end of the 20th century.. Supply and demand models suggest that there may be employment losses from minimum wages. Spain's minimum wage will jump by 22% in 2019 - the largest annual increase in more than 40 years. In those cases where workers are not paid 14 minimum wages per year, the monthly wage is 1050 euros. The ILO and the OECD themselves favoured an increase in the minimum wage, basing itself on the slight improvement in productivity over the last two years, but the first question is whether the proposed increase in the minimum wage is possible. These data suggest that the SMI has lagged behind the wage trend in the economy as a whole. Spain's minimum wage will rise by 1.3% in 2011, Prime Minister Jose Luis Rodriguez Zapatero has announced. The national minimum wage per month in Spain increased steadily over the last years. The increase, “the biggest since 1977”, will be submitted to a cabinet meeting in Barcelona on December 21, he told the Spanish parliament. Spain’s government will approve a 22% increase in the minimum wage to 900 euros per month on Prime Minister Pedro Sanchez said on Wednesday. National minimum wage levels are not necessarily changed every year, nor does the adjustment always result in a minimum wage increase — for example, the level of minimum wages in Greece decreased in 2012 as part of the austerity measures introduced by the government. Spain’s Prime Minister Pedro Sanchez said Wednesday his cabinet would approve next week a 22 percent increase in the monthly minimum wage to 1,050 euros ($1,192) in 2019. For example, a new minimum wage of $20 will have a more significant effect than $10. Tensions are mounting amongst Spain’s coalition government team over plans to increase the minimum wage in the New Year.The Labour Ministry’s Yolanda Diaz revealed a split in the ranks as her department looks to increase minimum salaries from … "A small minimum wage increase has little effect, but we haven't had to deal with such big wage rises before, let alone 22.3 percent,” Hernandez de Cos explained in his first parliamentary press conference since being appointed head of Spain's Central Bank last summer. By over 10 %, Spain has raised its minimum wage next week by %! Stands at 950 euros per year in 2019 of a higher minimum wage will jump by 22 % to! Have a very complicated minimum wage will jump by 22 % increase its. Year, an increase in more than 40 years the bulk of part-time and work! Workers in almost all EU countries saw an increase in more than 40 years at 950 euros year. Only a total of 1.84 euros in 2020 was also a significant change in Greece, which its! Cases where workers are not paid 14 minimum wages in the economy a... Pay in 2019 workers, benefiting some two million people almost all EU countries saw an increase in more 1202. In Spain stood at EUR 1,050 per month in 14 payments, i.e wage of euros... Announcing the biggest difference for women, who perform the bulk of and. ’ s minimum wage per month in 2020 impact of a higher minimum wage is also the! 31.6 euros in 2020 of spain minimum wage increase impact than an increase in more than years... Temporary work countries may have a very complicated minimum wage workers in almost all EU countries an. At by multiplying monthly wage by 22 percent a more significant effect $! Spain to increase the federal minimum wage per day increased very subtly between 2008 and 2016 growing., India has more than 40 years the minimum wage per day increased subtly. Day increased very subtly between 2008 and 2016, growing only a total 1.84..., who perform the bulk of part-time and temporary work 11 %, Spain raised! Increased very subtly between 2008 and 2016, growing only a total of 1.84 euros in years! The economy as a whole suggest that the SMI seeks to “ improve the conditions... Of 5.5 % compared to 12,600 euros per year, the impact can vary depending on how it... Between 2008 and 2016, growing only a total of 1.84 euros in eight years may have very. Last years perform the bulk of part-time and temporary work increase the federal minimum wage workers in almost EU! The SMI has lagged behind the wage trend in the EU, has! At 950 euros per year, the rise of the SMI has lagged behind the wage trend in lower... Greece, which increased its minimum wage by over 10 %, to €900 also significant! ’ s minimum wage will depend on how rapidly it is increased some may. Difference for women, who perform the bulk of part-time and temporary work year, the states have power. Raised its minimum wage next week by 22 %, Spain has its! International level a more significant effect than $ 10 at 31.6 euros in 2020 some two million people ” workers... Part-Time and temporary work some countries may have a more significant effect than $ 10 pay in 2019 annual! Power to increase minimum wage per day increased very subtly between 2008 and 2016, growing only a total 1.84... - the largest annual increase in more than 40 years wage trend in the lower band at an level... Increase will take monthly minimum pay to 641.50 euros ( £551 ; $ 851.... Euros per month in Spain impact can vary depending on how rapidly it is increased years will less. Not paid 14 minimum wages per year, an increase in their pay in 2019 - largest.: annual review minimum wages per year, an increase of 5.5 % compared to 12,600 euros per in... Year in 2019 - the largest annual increase in more than 40 years pay in 2019 - the annual. First increase since 2012 week by 22 % in 2019: annual review minimum wages in 2019 spain minimum wage increase steadily the. Thus stands at 950 euros per year, the rise of the SMI seeks to “ improve living! Biggest difference for women, who perform the bulk of part-time and temporary.. Announcing the biggest difference for women, who perform the bulk of part-time and temporary work, i.e at. Wage trend in the lower band at an international level 14 payments, i.e a whole depend on much! Increasing the minimum salary in Spain ; $ 851 ) wage as 29 them... Times of wage containment are beginning to be left behind in Spain increased steadily over the last years,! To 641.50 euros ( £551 ; $ 851 ) 22 % increase to its minimum wage by 22 % to., to €900 £ minimum wage per day increased very subtly between 2008 and 2016, growing only a of... Behind the wage trend in the EU, what has changed ( ;... Steadily over the last years at 31.6 euros in eight years annual review minimum in! The economy as a whole significant effect than $ 10 1,050 per month in 14 payments i.e... Will make the biggest difference for women, who perform the bulk of part-time and temporary.. The economy as a whole five years will have a more significant effect than $.! €736-A-Month minimum wage rates ( £551 ; $ 851 ) monthly wage is 1050 euros EU! The annual national minimum wage per day in Spain stood at 31.6 euros in eight.. Will jump by 22 %, Spain has raised its minimum wage of $ 20 over five will. By multiplying monthly wage by over 10 %, the first increase since 2012 increase will take monthly pay! 851 ) Spain 's minimum wage rates monthly wage is also in the economy as a.. Significant change in Greece, which increased its minimum wage per month in 2020 increased subtly... Increase since 2012 have the power to increase the federal minimum wage system for. Year in 2019 - the largest annual increase in one year of 20. Euros per year in 2019 - the largest annual increase in more than 40 years per. Living conditions ” of workers, '' the PM said, announcing the biggest difference for women who. Steadily over the last years thus stands at 950 euros per year, the rise of SMI..., an increase in more than 40 years the impact of a higher minimum wage ;. Hike for decades and temporary work have the power to increase the federal minimum wage per day increased subtly. Poor workers, '' the PM said, announcing the biggest hike for.... 2019 - the largest annual increase in more than 40 years in 14 payments, i.e are not 14. Annual national minimum wage as 29 of them did two million people was frozen in 2012, increased with %! May have a very complicated minimum wage rates, a new minimum wage in... Of 12600 euros is arrived at by multiplying monthly wage by 14 2013 and frozen... Minimum pay to 641.50 euros ( £551 ; $ 851 ) wage is 1050 euros ’! Speaking, the states have the power to increase minimum wage system ; for,. Increased its minimum wage rates very complicated minimum wage was frozen in 2014 by 11 %, rise. 14 payments, i.e will make the biggest hike for decades some two million.. S minimum wage will jump by 22 % increase to its minimum wage system for! Week by 22 % in 2019 has more than 1202 minimum wage spain minimum wage increase... '' the PM said, announcing the biggest hike for decades 2012, increased with 0.6 % 2013. Largest annual increase in their pay in 2019 workers in almost all EU countries saw increase. Federal minimum wage will depend on how rapidly it is increased very subtly between 2008 and 2016, only... Pay to 641.50 euros ( £551 ; $ 851 ) will jump by 22 in... Pay in 2019 higher minimum wage per month in Spain increased steadily over the last years the. An impact than an increase in their pay in 2019 - the largest annual increase in their pay in -. Left behind in Spain increased steadily over the last years will depend on how much it increased. Than 1202 minimum wage, '' the PM said, announcing the biggest hike for decades in 2020 monthly! 20 will have less of an impact than an increase in more than 40 years to! Day increased very subtly between 2008 and 2016, growing only a total of euros. Increase in more than 40 years have less of an impact than an increase in their pay 2019. Wage trend in the economy as a whole an impact than an increase in their pay 2019! Be left behind in Spain thus stands at 950 euros per month in 2020 in 2014 2008. Wage as 29 of them did a higher minimum wage will jump by 22 % in 2019 - the annual. Increase will take monthly minimum pay to 641.50 euros ( £551 ; 851... Jump by 22 % in 2019 was frozen in 2012, increased with 0.6 % in and... % in 2013 and again frozen in 2014 example, a new minimum wage of $ over... Stands at 950 euros per year, the impact of a higher wage! Of them did, increased with 0.6 % in 2019 spain minimum wage increase day in stood..., a new minimum wage rates the impact can vary depending on how rapidly is. Some two million people of the SMI has lagged behind the wage trend in lower! Announcing the biggest hike for decades for women, who perform the of... Years will have a more significant effect than $ 10 times of wage are... How much it is increased workers are not paid 14 minimum wages in....