Spain is launching preparations for the next increase of the minimum wage. Deputy Prime Minister and Minister of Labor Yolanda Díaz announced plans to convene a commission of experts in the near future to discuss parameters for the new adjustment of the minimum income, which is currently set at 1,184 euros per month with 14 payments per year.
According to Díaz, specialists have been analyzing the situation for a year and are preparing recommendations for the government. The commission’s final proposals will serve as the basis for negotiations with business representatives and trade unions. The minister emphasized that expert decisions will be taken into account when shaping the authorities’ final position.
The issue of taxing the minimum wage remains relevant. In 2025, recipients of the minimum income are exempt from paying income tax, but it is not yet clear whether this measure will continue in 2026. Díaz noted that the fairness of the tax system should begin with the highest income levels, not the lowest, and expressed concern that attention often focuses on small salaries.
Previously, the labor and finance ministries agreed to exempt the minimum wage from personal income tax only for the current year. The issue of extending this benefit for the next period will be decided further, and it is still uncertain whether minimum wage earners will receive similar support in 2026.
In addition to indexing the minimum wage, the labor ministry’s priorities include adopting new rules for interns, passing a decree on additional family leave, and preparing labor law reforms for workers in the cultural sector.
Another important initiative is reducing the standard workweek to 37.5 hours. Negotiations on this issue are ongoing in parliament. Díaz emphasized that this reform would affect more than 12 million Spaniards and could significantly impact quality of life and labor productivity.
The labor minister noted that even among supporters of the opposition Partido Popular, there is demand for a shorter workweek and expanded social protections. However, she said the main obstacle to passing the law remains the position of 137 Partido Popular deputies, who have yet to express willingness to support the initiative.
Díaz reported that the leadership of the Partido Popular has so far avoided engaging on the issue of reducing the workweek, despite other parliamentary groups being open to dialogue. She expressed hope that talks would resume in September and stressed the importance of discussing this topic for the future of the Spanish labor market and the development of small businesses.
Thus, in the coming months, Spain is expected to make important decisions in the fields of labor relations and social policy. The authorities plan to continue reforms aimed at improving living standards and protecting workers’ interests, despite political disagreements and challenging negotiations in parliament.
