Spain's Labour Ministry Moves to Raise Minimum Wage 4.9% to €1,281 Ahead of Elections

In brief

• Spain's government experts recommend raising the 2027 minimum wage by 4.9%, from €1,221 to €1,281 gross a month across 14 payments.
• The Labour Ministry is accelerating the process to finish approval before the 29 November general election.
• Unions want a 7% rise and employers criticise the ministry's speed; final figures will be set in negotiations with social partners.

Expert panel backs a 4.9% increase

A group of academics, trade unionists and government representatives that the Labour Ministry convenes each year has finished its recommendation on the 2027 minimum wage, known as the SMI. The panel proposes raising the gross figure from €1,221 to €1,281 in 14 payments, an increase of €60 a month (Díaz se encamina a su primer aumento del salario mínimo sin acuerdo con los sindicatos para aprobarlo antes del 29-N – EL PAÍS) (Los expertos de Trabajo recomiendan que el salario mínimo suba un 4,9% en 2027, hasta los 1.281 euros al mes – EL PAÍS). The rise is tied to the year-on-year trend in consumer prices (Los expertos de Trabajo expresan su inquietud porque las subidas del salario mínimo no impulsen más el resto de sueldos – EL PAÍS).

Government wants approval before the vote

The ministry has shortened its timetable more than under any previous term led by Yolanda Díaz. Officials want the measure settled before the general election on 29 November, so that a caretaker government or its successor does not inherit the decision. The department plans to open the proposal to public consultation in the coming hours, likely on Thursday, to leave enough time for the administrative steps that precede a Council of Ministers vote. Those steps require ten working days.

Wider concerns in the report

Beyond the headline figure, the 45-page report flags a recurring worry: minimum-wage increases have not pushed up other salaries as much as the panel would like. Expansión puts the annual cost of the rise at €837 for the year (Yolanda Díaz perfila una subida del salario mínimo del 4,9% para 2027, hasta 1.281 euros al mes – Expansión).

Unions and employers disagree

The unions are asking for a 7% increase, well above the panel's figure. Employers have criticised the ministry for moving too fast. The formal negotiation with social partners, where the final percentage will be set, starts after the expert recommendation is presented.