The Ministry of Labor has implemented an express measure to cover the legal vacuum left by the veto of the omnibus decree by which The extension of the interprofessional minimum wage was rejected (SMI) of 2024 until the Government approves the increase planned for 2025 … . At this moment, Spain does not legally have any SMI in force, so the department led by the second vice president, Yolanda Díaz, is going to prevent new hires that are carried out during these days take as reference “a minimum wage lower than that set in the 2024 SMI.”
This is stated in an interpretative criterion issued by the General Directorate of Labor on the consequences of the repeal of the validity of the SMI by 2024 taking into account its function of “interpretation and application of the legal provisions under its jurisdiction.” It could be possible for a company to hire a worker for a salary lower than the legal minimum when this legal loophole is now found.
Until a new value is set for the SMI 2025, it is determined through the instruction of the General Directorate of Labor that the abrupt disappearance of the extension does not affect current salaries, as it is understood that it is a salary already contractualized.
Furthermore, it warns that the Labor Inspection will “monitor” that workers receive the agreed remuneration on time and will verify strict compliance with this business obligation.
The minimum wage is set with a validity period of one year. But when the Government does not approve its revaluation for the year in December Following this, the SMI is no longer in force. That is why it is extended for one month. With this Wednesday’s vote, as of today, there is no SMI in force. It is the legal reality, although it will have no practical effects.
In fact, the idea of the department led by the second vice president, Yolanda Díaz, is to accelerate the process to approve the new SMI in an imminent Council of Ministers. In this case, no approval from Congress is necessary of Deputies to apply the measure, which would come into force retroactively with effect from January 1, 2025.
This same Wednesday, those responsible for the Ministry of Labor met with employers and unions to address precisely the new increase in the SMI. The Government’s idea is to authorize an increase of 50 euros per month, up to 1,184 euros, which represents an increase of 4.4%. This is the highest level advised by the committee of experts within the range proposed in its document on SMI recommendations.
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