The trail of consequences derived from the parliamentary defeat that the Government suffered this Wednesday with the veto of the omnibus decree with dozens of measures is going to leave the Spanish economy without a minimum wage interprofessional (SMI) at least for a few days. This legal loophole is explained because the decree contained the extension of the 2024 SMI, a necessary action until the new one – which is being negotiated precisely these days – is approved by the Council of Ministers. During this kind of legal pause, no reference will be in force legal about it.
The minimum wage is set with a validity period of one year. But when the Government does not approve its revaluation for the following year in December, the SMI is no longer in force.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 will have no effect practical
The adjustment of the calendar is so complex that it has happened that the SMI of 2024 is not extended nor is it that the new one has been authorized. Given this situation, The Ministry of Labor is evaluating the “most appropriate” legal route to guarantee that the SMI remains at its current value until its new amount is approved for this year. It is a legal reality, although it has 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 endorsement is necessary of the Congress of Deputies to apply the measure, which would come into force retroactively with effect from January 1, 2025.
This Wednesday, officials from 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 from 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.
The unions UGT and CC.OO. They have been in favor of raising the minimum wage a little more, to around 1,200 euros per month. For their part, businessmen have been against a 4.4% increase, because, they insist, it is added to the increases authorized in the last six years, which accumulate a 50% increasewhich reaches 60% if social contributions are included.
#defeat #Government #leaves #Spain #minimum #wage #days
