Minimum wage regulation
The minimum wage in Spain is regulated by article 27 of the Labour Code (Law 8/1980). This article establishes that the minimum wage is determined by the government after consulting social partners. Every year, the government publishes a Royal Decree containing the updated wage rate for the coming year. The minimum wage for 2024 was regulated in Royal Decree 145/2024.
No changes to this article were made in the most recent period.
Actors involved in determining the minimum wages
The government and social partners are involved in determining the minimum wage. The government may consult with, or in some cases negotiate with, the most representative social partner organisations at national level, as defined by Law 11/1985. These are the Workers' Commissions (Comisiones Obreras, CC.OO.) and the General Workers' Union (Unión General de Trabajadores, UGT) for trade unions, and the Spanish Confederation of Employer Organisations (Confederación Española de Organizaciones Empresariales, CEOE) for employers.
In 2021, 2022 and 2024, a temporary committee of experts appointed by the government produced a report with recommendations for minimum wage increases in 2022, 2023 and 2025. The aim of this report was to make recommendations regarding the goal of reaching 60% of the average wage. The committee included representatives from the largest trade unions (CCOO and UGT), the main employer organisation (CEOE), academics, other experts, and government officials from the finance and labour ministries.
Process of setting the minimum wage
The Labour Code states that the government sets the minimum wage after consulting with social partners. However, the level of social partner involvement can vary. Since 2019, the government has moved beyond consultations and attempted to negotiate the minimum wage with social partners. There are no set requirements for when or how consultations should take place. Traditionally, consultations began in November to allow for a decision in December and implementation on 1 January the following year. However, recent negotiations have extended into January to reach an agreement with social partners. Consultations and negotiations occur through ad-hoc meetings with social partners, and the Social and Economic Council of Spain (Consejo Económico y Social, CES) has not been involved.
Additionally, in 2021, an expert committee was established to provide recommendations for minimum wage increases aimed at achieving the 60% average wage target.
Criteria referred to in minimum wage setting
The Labour Code, in Article 27, outlines four factors the government considers when setting annual minimum wage increases:
- Consumer price index (CPI)
- Average productivity growth
- Increase in the labour share (worker's portion of national income)
- General economic climate
The Code doesn't explicitly state whether projected values for these variables are used. Traditionally, past inflation and productivity trends over the past few years have informed decisions. However, the weighting of each factor and how they are incorporated into the minimum wage determination process remain unspecified. Additionally, the article lacks operationalisation of these variables.
Criterion | How is this defined/operationalised? | Regulation or practice |
Consumer price index | Not operationalised | Not regulated |
Average productivity | Not operationalised | Not regulated |
Labour share | Not operationalised | Not regulated |
General economic context | Not operationalised | Not regulated |
Coverage of the minimum wage and exemptions
The minimum wage covers all workers in agriculture, manufacturing and service sectors, including the public sector irrespective of their contractual status. There are no exemptions to it.
Subminima and higher rates
There are no subminima nor higher rates for the minimum wage.
Frequency of payments and how the rate is defined
The minimum wage is set as both a monthly and a daily rate. The law doesn't specify the number of hours associated with either rate. For part-time work, the law guarantees a minimum wage proportional to the hours worked. Workers receive the minimum wage for 14 payments throughout the year.
There's one exception to how the minimum wage is calculated. Minimum wage regulations define a specific way to calculate the rate for temporary and domestic workers. For example, Royal Decree Law 145/2024, which sets the 2024 minimum wage, states that temporary workers and seasonal workers employed by the same company for no more than 120 days will receive, in addition to the minimum wage, a proportional share of their pay for Sundays, public holidays, and two bonus monthly payments. Their daily pay can never fall below €53.71.
The decree setting the level of the statutory minimum wage also establishes an hourly minimum wage for domestic workers employed on an hourly basis. The legal source for this hourly rate is art. 8.5 of Royal Decree 1620/2011. It must not be intended as a subminimum or higher minimum, but rather as the SMIC itself (that also applies to domestic workers, according to art. 8.1 of Royal Decree 1620/2011) reproportioned as an hourly rate comprehensive of all remuneration components.
What counts towards the minimum wage
The minimum wage doesn’t include bonuses, overtime allowances or any other allowance. It is accordingly the basic rate for any wage to which other allowances, complements and bonuses can be added, whether defined in collective agreements or individual contracts.
Regular national report on minimum wage setting
While there isn't regular reporting on the minimum wage itself, an expert committee did produce reports in 2021 and 2022. These reports outlined a path for minimum wage increases to reach 60% of the average wage, and they informed the minimum wage setting process for 2022 and 2023.
Other country resources on minimum wages
The main resources consist of reports by think tanks, research institutions and social partners. Here are the most relevant resources:
Official institutions
Think tanks and research institutions
Social partners
Updated 03/03/2025