It was another of the issues that had the government left to materialize, especially when after the fall of the Omnibus Spain decree it was for a few days without minimum wage. This Monday Yolanda Díaz has signed with the unions a new upris of the SMI.
As it happened last year with the previous increase, businessmen have missed. These are the Keys.
How much the smi goes up
The increase in the minimum interprofessional salary is 50 euros per month (700 a year) and It goes from 1134 to 1184 euros distributed in 14 payments.
It is a rise in 4.41%. The minimum interprofessional salary refers to the gross salary of workers. In this case, it involves 16,576 euros gross per year. In the event that these pays are prorated to 12 the monthly amount is 1381.33 euros.
Who affects the ascent of the SMI?
According to union estimates, This increase will affect 2.1 million workers. The workers’ commissions calculations place the workers affected with full -time contract in 1.8 million and 263,000 people with part -time contracts.
It is also estimated that it will have a greater impact on employees with worse working conditions such as women, young people or temporary contracts.
When does the increase in the interprofessional minimum salary come into force?
Yolanda Díaz signed on Monday the agreement with the unions and This Tuesday has been approved in the Council of Ministers.
The next step is to appear in the BOE with the amounts already updated. The Minister of Labor defended that this measure is «Key to reduce inequality and labor poverty».
The expert committee of the Ministry of Labor proposed that the amount would be 60% of the average salary in Spain and that the rise was between 3.44% (39 euros) and 4.41% (50 euros). Thus, finally from work they have opted for the second option.
Does it have retroactive effects?
Yes. The minimum wage increase will apply with retroactive effects since January 1.
The minimum wage has finally been finalized at a rise of 50 euros until 1184. However, this amount is more than the entrepreneurs were willing and less than what the unions intended.
The former have been unmarked from the agreement when considering it excessive since they proposed a 3.4%rise. In the case of the latter, they requested an increase of 5.8%, although they finally reduced their demands when the Omnibus decree fell.
Díaz pointed out in the signing ceremony of the agreement for the SMI ascent that would have liked the agreement It was “tripartite”, although he thanked the employers for his proposals and that he has “returned to the fold” of social dialogue.
Will the SMI pay IRPF?
It was one of the great unknowns that Hacienda has finally clarified on Tuesday. The climb of SMI will not be accompanied by the increase in the minimum exempt for the personal income tax.
If the Treasury remains in this position of not raising the rental threshold to equate it to the minimum wage, a part of those workers would begin to have a retention in their payrolls. The main consequence is that thousands of minimal wage perceptors will begin to have a retention in their payrolls from next month.
To the worker, Instead of charging 50 it would receive 43.5% less that translates into 21.5 euros. Thus, IRPF withholdings will cause in real terms, 28 euros of salary climb are perceived (and would stay in about 400 per year). From Hacienda they argue that a majority of SMI percectors have families loads and, therefore, they will be exempt from payment and only a minority would be subject to taxation.
The Minister of Finance, María Jesús Montero, raised on Tuesday that “fiscal pedagogy” has been made about this issue. For its part, the head of Labor, Yolanda Díaz, has rejected this option and at the press conference of the Council of Ministers that “fiscal justice in Spain begins above and not below.”
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