The Government has approved today in the Council of Ministers the Up of the Minimum Interprofessional Salary (SMI) at 1,184 euros per month with retroactive character since January 1, 2025. The rise, which arrives after months of negotiations and a pact between the government – and specifically the Ministry of Labor – and the unions, which yesterday signed the agreement.
The climb will take effect this 2025 on all those people –More than 2.5 million in Spain– That they charge the minimum wage, although it must be remembered that they will not charge that increase in full: Hacienda will not adapt the personal income tax to the minimum wage increasewhich implies that workers who charge the minimum wage must be taxed for the first time.
Finance will not adapt the IRPF sections to exempt the minimum wage exempt
Until now, the workers who received the SMI were exempt from paying their profits for this tax, but now they must do so, since The Ministry of Finance will not adapt the IRPF sections to exempt the amount exemptsomething that had been done so far so that the tax did not leave part of the SMI increase.
However, the Treasury defends that a part of the workers who receive the minimum wage will continue without paying the personal income tax due to the fiscal reduction applied to low and half income, According to RTVE.
700 euros annually up, 300 euros of IRPF
The SMI climb It is equivalent to all those workers who receive it at 50 euros more per month, and in total 700 euros more a year. Not adapting the personal income tax to exempt this amount of income exempt, SMI workers will pay around 301 euros per year in the rent, with an average type of retention of 1.81% over the 1,184 euros of the new average salary.
That is to say, The increase of 700 euros per year for workers per SMI will be around 400 euros After applying the IRPF taxation, which must be paid for the first time. This has meant a debate between work and the Treasury, prevailing the position of the second department.
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