With inflation at 4.9%, trade unions had requested a 7% increase in the minimum wage for 2027. Employers’ associations had asked to leave the decision in the hands of the next Government, whichever emerges from the November 29th elections. Meanwhile, the committee of experts convened by the Ministry of Labor had recommended raising it by 4.9%, matching inflation.
However, just days before the election, the Ministry of Labor announced it will raise it by 5.3%, to 1,286 euros per month. This figure exceeds what is currently the most frequent salary in Spain, which according to the National Statistics Institute (INE) stands at 16,520 gross euros per year—translating to a net monthly salary of 1,080 euros in 14 payments, or 1,260 euros if received over 12 payments.
When Pedro Sánchez came to power in 2018, the Minimum Wage was 10,302 euros per year. In 2019 he raised it by 22%, in 2020 by 5.5%, in 2021 by 1.6%, and in 2022 by 3.6%. During the latest legislative term, he raised it again by 8% in 2023, 5% in 2024, and 2.38% in 2025, extending it for 2026.
It is estimated that over two million people in Spain earn the minimum wage, or lower amounts due to working part-time hours, while around 700,000 earn the most frequent salary, leaving nearly three million people affected by this “overlap”: as the modal wage (€16,520 gross/year in 14 payments) is very close to today’s legal minimum wage (€16,254 gross/year in 2025/2026), a “compression” at the bottom has taken place, and jobs that were previously in agreements slightly above the minimum have been caught up by the minimum wage increases.
