The minimum interprofessional salary (SMI) is located at 1,184 euros gross per month in 2025. The coalition government has approved the new amount in the Council of Ministers on Tuesday, agreed by work with the majority unions, which is a 4, 4% more than the current 1,134 euros. That is, 50 euros more a month, 700 euros more a year. The executive thus consolidates a 61% rise since 2018, when Pedro Sánchez arrived at La Moncloa.
“It is a historical climb,” said the spokeswoman for the coalition executive, Pilar Alegría. The Second Vice President and Minister of Labor, Yolanda Díaz, has celebrated the SMI as a key tool “against inequality” and has insisted that “Spain feels very good to raise the minimum wage.”
Against the catastrophist omens for the increases, Yolanda Díaz recalled that reality has “disassembling the neoliberal theses” about the massive destruction of employment and it has been shown that “that of the SMI is a success story”, which has allowed reduce inequality and reach job records.
SMI is an indicator of great importance for the economy and daily life of thousands of homes. This is the minimum legal salary that can be paid in Spain, expressed in monthly terms for a full day and in 14 payments.
Seven years ago, the SMI was a “marginal” and “poverty” salary, the second vice president and Minister of Labor, Yolanda Díaz, and the union leaders UNAI Sordo (CCOO) and Pepe Álvarez (UGT) recalled on Monday. However, the coalition government has undertaken a continuous path of increases in this salary soil to place it in 60% of the average salary, as recommended by the European Social Charter.
Next, some practical details of the minimum interpfeois salary are explained, as since when will it be charged who will reach the climb.
Since when does the minimum wage increase apply?
As it has done in recent years, the government has approved the new amount of the minimum wage with retroactive effects since January 1, 2025.
Thus, companies must pay the new minimum wage of 1,184 euros per month from now on and, in addition, pay a pay with the increase corresponding to the month of January.
The 1,184 euros of minimum wage or net?
Gross. The monthly minimum wage is at 1,184 euros gross per month in 14 payments, expressed for a full day. In the event that extraordinary pays are paved, the monthly SMI reaches 1,381.3 euros a monthly gross in twelve payrolls. In annual terms, the SMI is at 16,576 euros.
Therefore, the net salary that the worker receives in his bank account is somewhat lower. To the gross quantities we must deduct social contributions to social security (for social protection for unemployment or disease, for example) and also the retention of IRPF. This year, in fact, it is the first in which the SMI will not be exempt from submitting the income statement and will mean that some beneficiaries – around 20% – have to contribute to this tax.
How much will you pay for IRPF? What is the net SMI?
IRPF payment varies depending on some personal circumstances of citizens, as if they have children or not, among others. Hacienda estimates that 80% of workers will continue to be exempt from the payment of the tax, but 20% (mainly single people and without children) will contribute.
As explained in this issue, single people without descendants or deductible ascendants for the purposes of calculating withholdings will pay 300 euros a year (21.4 euros/month, alleged 14 payments). For these people, the type of retention of the IRPF would be about 2%.
Another example: a taxpayer with a partner and who has a child older than three years will have a retention of 99 euros a year. However, a taxpayer with a partner and who has a child under three years old will not suffer any retention in the IRPF.
Therefore, the minimum net salary will vary depending on these personal circumstances. The commission of experts for the SMI ascent, under the Ministry of Labor, calculated an average reference: a net SMI of 15,399 per year taking into account an effective type of IRPF of 0.6%. The monthly net SMI would be 1,099 euros in 14 payments or 1,283.25 euros in 12 payments, if they are paved.
So, can anyone charge less than 1,184 euros gross per month?
For a full day of work, no. In the minimum wage, only money remuneration is computed, without the salary in kind, can lead to the payment of lower quantities in any case.
That is, a company cannot pay less of those 1,184 euros because in addition to salary it includes other benefits, such as a dining room in charge of the company or the use of a home in charge of the employer, for example, usual with household workers internal
But there will be people who charge less than 1,184 euros gross per month: those who do not work full, but partial days. The vast majority, almost 75%, are women. In this case, the monthly minimum wage is calculated proportionally depending on the hours worked. For example, 592 euros gross for a day of four hours a day (instead of eight).
What is the minimum daily salary? What about home workers?
The minimum wage decree also sets other references, such as the minimum daily salary and which is applied to possible and temporary, as well as household employees.
The amounts are:
- SMI Diary: 39.47 euros gross.
- SMI for possible and temporary, for legal day in the activity: 56.08 euros gross.
- SMI Home employees, per hour effectively worked: 9.26 euros gross.
Who charges the minimum wage?
The successive increase in the SMI – and the slightest increase in other remuneration – have meant that more and more people charge salary soil. If in 2018 they were around 582,000 people, according to CCOO calculations, now the new minimum wage will directly reach “about 2.4 million working people”, they encrypt the Ministry of Labor.
Above all are women: 65.8%. Therefore, Vice President Yolanda Díaz stressed that the SMI is a “feminist tool par excellence.” In addition, almost 27% of the perceptors of the minimum wage are young people, between 16 and 24 years old.
By sectors, “31% of beneficiaries belong to the agricultural sector, 14.3% to services, 5.9% to the industry and 3.4% to construction.” For economic activities, the unions point out two especially affected by the SMI: trade, hospitality and agriculture.
By autonomous communities, the SMI impacts mainly in Andalusia, with the largest number of beneficiaries (476,000 people), followed by the Community of Madrid (391,800 people) and Catalunya (326,500 people), highlighted vice president Yolanda Díaz.
Are the salary accessories take into account in the SMI computation?
Yes. That is, if a worker charges a base salary lower than the SMI, but reaches 1,184 euros per month thanks to pluses and salary accessories, he will not see his payroll increase. The company “will absorb” the increase, as usually called.
The “absorption and compensation” of the pluses in the minimum wage is one of the battles of the unions in recent years, which they lost in court, with a sentence of the Supreme that endorsed this business practice. The Ministry of Labor has committed to CCOO and UGT to address this subject at an upcoming negotiating table that “modernizes” the law on the minimum interprofessional salary.
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