CEOE Considers Conditional Increase to Spain's Minimum Wage
Discussions continue on potential minimum wage rise, with conditions set by employers.
The ongoing dialogue between the Spanish government, employers, and trade unions enters a crucial phase today as discussions progress regarding the proposed 2025 increase in the Salario Mínimo Interprofesional (SMI).
The Ministry of Labour has proposed an increase of 50 euros per month, which would raise the SMI to 1,184 euros per month, distributed across fourteen payments annually.
This signifies a 4.4% increment compared to the 1,134 euros set for 2024.
Despite Segunda Vicepresidenta Yolanda Díaz expressing optimism about reaching a consensus, the agreement between all parties remains unconfirmed.
The unions, CC OO and UGT, have indicated they are willing to endorse the government's proposal on the condition that the minimum wage exceeds 1,200 euros monthly in the future.
In contrast, the Confederación Española de Organizaciones Empresariales (CEOE) and the Confederación Española de la Pequeña y Mediana Empresa (Cepyme) are in discussions to finalize their stance, focusing on an increase aligned with the inflation rate of 2.8% for 2024 or the average 3% increase in collective agreements, resulting in a rise of 31 to 34 euros monthly.
Business leaders have stipulated that any increase must account for sectoral disparities and regional differences.
Additionally, they advocate for the inclusion of public contract indexation to the SMI or inflation rate, addressing a nearly decade-long freeze in public contract tariffs.
The CEOE and Cepyme further insist on compliance with Article 27 of the Workers' Statute, which requires the government to consider inflation, national productivity, labor's share in national income, and the broader economic situation when adjusting the SMI.
This proposal from the Ministry of Labour aligns with the upper end of the recommendations from its advisory committee, affecting approximately 2.5 million workers.
Both the Ministry and trade unions aim for the SMI to reach 60% of the average wage, a benchmark set by the European Social Charter.
However, employers argue that the 2024 adjustment already exceeds this threshold in 13 of Spain's 17 autonomous communities.
For instance, in Extremadura, the SMI equates to 72.8% of the average wage.
The CEOE emphasizes the increased burden on small and medium-sized enterprises (SMEs), highlighting that in most provinces, SMEs with up to 50 workers experience the greatest impact from SMI hikes, with 75% of average salaries surpassed in 26 provinces given the 2024 level.
The Ministry of Labour has proposed an increase of 50 euros per month, which would raise the SMI to 1,184 euros per month, distributed across fourteen payments annually.
This signifies a 4.4% increment compared to the 1,134 euros set for 2024.
Despite Segunda Vicepresidenta Yolanda Díaz expressing optimism about reaching a consensus, the agreement between all parties remains unconfirmed.
The unions, CC OO and UGT, have indicated they are willing to endorse the government's proposal on the condition that the minimum wage exceeds 1,200 euros monthly in the future.
In contrast, the Confederación Española de Organizaciones Empresariales (CEOE) and the Confederación Española de la Pequeña y Mediana Empresa (Cepyme) are in discussions to finalize their stance, focusing on an increase aligned with the inflation rate of 2.8% for 2024 or the average 3% increase in collective agreements, resulting in a rise of 31 to 34 euros monthly.
Business leaders have stipulated that any increase must account for sectoral disparities and regional differences.
Additionally, they advocate for the inclusion of public contract indexation to the SMI or inflation rate, addressing a nearly decade-long freeze in public contract tariffs.
The CEOE and Cepyme further insist on compliance with Article 27 of the Workers' Statute, which requires the government to consider inflation, national productivity, labor's share in national income, and the broader economic situation when adjusting the SMI.
This proposal from the Ministry of Labour aligns with the upper end of the recommendations from its advisory committee, affecting approximately 2.5 million workers.
Both the Ministry and trade unions aim for the SMI to reach 60% of the average wage, a benchmark set by the European Social Charter.
However, employers argue that the 2024 adjustment already exceeds this threshold in 13 of Spain's 17 autonomous communities.
For instance, in Extremadura, the SMI equates to 72.8% of the average wage.
The CEOE emphasizes the increased burden on small and medium-sized enterprises (SMEs), highlighting that in most provinces, SMEs with up to 50 workers experience the greatest impact from SMI hikes, with 75% of average salaries surpassed in 26 provinces given the 2024 level.
Translation:
Translated by AI
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