Increase in the minimum wage backdated to January 1

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Yolanda Diaz, Labour Minister and Second Vice President Credit: La Moncloa flickr Yolanda Diaz, Labour Minister and Second Vice President Credit: La Moncloa flickr

IT is expected that on February 22 the Spanish cabinet will approve an increase in the minimum wage backdated to January 1.
Newspaper reports concerning the actual amount involved have been confusing with some stating the amount will be €1,000 per month and others €1,167 but surprisingly both figures are correct depending on how many months there are in a year.
The actual annual amount is to be €14,000 which if divided by 12 converts to the higher figure but many companies and organisations in Spain work on a 14 month year as they give bonuses in summer and at Christmas.
Taking the latter calculation, the increase is €35 per month when compared to the 2021 figure and is actually €4 a month more than originally anticipated in order for the government to meet the unions’ demands of €1,000.
When the government came into power in 2018, it stated its intention to increase the minimum wage to be 60 per cent of the average annual wage in the country and although it has upped the minimum annually from an original starting base of €735 it still has a long way to go.
Not unsurprisingly, the employers’ associations opposed the increase arguing that the economy would not be able to support this additional cost which will benefit nearly two million workers, but will have to comply with the decision.
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