Experts Propose A 10% Increase To The Minimum Wage By 2023

A Report by the Advisory Commission for the Analysis of the Minimum Wage to be presented today, June 18, will suggest a 10 per cent hike to wages, Spanish media reports.

IF approved, the increase could see the minimum wage in Spain rise from €950 per month to €1,045 per month, La Sexta reported.

The report will be presented by the Ministry of Labour and Social Economy and Minister Yolanda Diaz will assess it.

The government will be under pressure to approve the proposed hike not only because they will face re-election in 2023, but because of growing public anger against increasing expenses such as costly electricity bills.

However, earlier this month the Bank of Spain said the last minimum wage hike may have backfired and cost the country 180,000 jobs.

The hike impacted young people the most but barely workers over the age of 45. Young workers on the minimum wage now face reduced chances of getting a permanent contract and have probably seen their hours per month cut back.

The Bank estimated that the 22 per cent rise in the minimum interprofessional wage launched by the current government caused the labour market to slow down.

“Following the increase, the employment of low-wage workers grew more slowly,” the bank said on June 8.

“A larger adverse impact on the job losses of older workers and a sharper reduction in hours worked and in job creation for younger workers,” it added.

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