The analysis of the committee that has advised the Ministry of Labor to propose an increase in the minimum interprofessional wage (SMI) includes a clear warning about the impact of this measure on companies: the number of workers who are included in the group that receives the SMI is increasing with the “potential danger”the text indicates, that this reality means that “experienced workers” or “with a medium qualification” remain within the salary range covered by the minimum wage.
This conclave of experts, which is the one that had recommended raising the minimum wage between a minimum of 3.4% (about 38 euros per month) and 4.4% (the 50 euros that Minister Yolanda Díaz has opted for) , they insist on pointing out that «the rapid increase in the SMI» that has been approved since 2019 causes an effect to say the least: the increase in «concentration of workers in a narrow wage band around the minimum wage.”
This reality is explained because the growth of the minimum wage has been exponential in recent years, with a growth of 50% (more than 60% if contributions are included) which has gone from 735 euros per month in 2018 to the 1,184 euros planned now. However, the average salary of Spaniards has not grown in that proportion in that period: five years ago it was 24,000 euros (about 1,750 euros per month) and exceeds 26,000 euros (about 1,900 euros). That is, 12% in the period. In this way, more and more of the workforce is absorbed by those of the SMI. Something that for the council is risky since, as they remember in their report, “heMinimum wage should be the reference for unskilled workers or without experience,” they point out.
This danger has “potential implications for human resources management” which he urges to analyze for the future. Because the minimum gap between some workers – the trained ones – versus others – those with a lower professional profile – can cause problems both when it comes to retain talentFor example, as sign him from other companieswith the consequent loss of productivity.
Too many agreements affected
Another warning that the committee leaves in its report is that given the current level of the SMI, increasingly closer to 1,200 euros per month, devour the lowest salaries of many businesseswhich were included in the corresponding collective agreements of those companies. Experts show their “worry” due to this circumstance given “the possibility that many of them cease to be relevant as they fall below” the new minimum reference set by the Executive.
They are based on a Eurofound report in which it is estimated that in Spain 40% of the 67 agreements studied established minimum wages below the official SMI. And that the difference between the lowest salary by agreement and the minimum wage itself was positive, reaching 16% in comparable terms.
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