Labour Minister To Propose Minimum Wage Hike

Spanish Government extends ERTE until January 31, 2021

Labour Minister, Yolanda Diaz. Image: La Moncloa

Minister of Labour and Social Economy, Yolanda Diaz, will meet with President Pedro Sanchez next week to discuss the possibility of raising the minimum wage.

DIAZ said she is in favour of raising the minimum wage by 10 per cent but that it is up to the government to decide.

“Our position is known, but the government will decide,” she said on June 24.

“We have skyrocketing prices for electricity and other basic products. It is very striking that we leave those who need it most with this protection,” she added.

On June 18 Diaz received a Report by the Advisory Commission for the Analysis of the Minimum Wage which suggested a 10 per cent hike to the minimum wage.

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

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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Deirdre Tynan

Deirdre Tynan is an award-winning journalist who enjoys bringing the best in news reporting to Spain’s largest English-language newspaper, Euro Weekly News. She has previously worked at The Mirror, Ireland on Sunday and for news agencies, media outlets and international organisations in America, Europe and Asia. A huge fan of British politics and newspapers, Deirdre is equally fascinated by the political scene in Madrid and Sevilla. She moved to Spain in 2018 and is based in Jaen.