According to the International Labor Office (ILO) “Well-designed minimum wages can help ensure a fair and equitable distribution of the fruits of progress to all”. The increase in the Minimum Interprofessional Wage (SMI), together with the labor reform, has established itself as one of the most popular policies of the current Government of Spain. Furthermore, the catastrophic forecasts of the right and part of the business community have been refuted: since 2018, the SMI has increased more than 50%, going from 10,303 euros annually to 15,876 euros in 2024, which has not prevented the work is achieving record numbers of job creation.
To analyze the impact of this increase in the SMI on salary distribution, there is data from the Tax Agency compiled in the statistics “Labor market and pensions in tax sources”. This census research is based on the annual declarations of all units that pay salaries and are obliged to make personal income tax withholdings, within the territory of the common tax regime (excluding the Basque Country and Navarra) and has been published since 1999.
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