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The rise of the LGSS

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The Spanish Government will meet with the social partners to negotiate an increase in the Interprofessional Minimum Wage

The year 2026 starts at the same amount as the end of 2025; that is, the minimum wage is €1,184, divided into fourteen payments.

MADRID, 09/09/2025.- La vicepresidenta segunda y ministra de Trabajo y Economía Social, Yolanda Díaz, este martes durante el Pleno del Congreso de los Diputados en Madrid. EFE/ Borja Sánchez-Trillo
The Minister of Labour, Yolanda Díaz, in a stock image of EFE

The Ministry of Labour and Social Economy has convened the social partners for this Wednesday, January 7, at 9:00 a.m., tonegotiatethe increase in the minimum wage (SMI) of 2026 , which will be retroactive from January 1.

This new meeting follows a first meeting between the trade unions, employers and the Government last December, at which they made clear the positions that are still far apart. For the time being, 2026 is set at the same amount as the end of 2025; that is, the minimum wage is set at EUR 1 184, divided into 14 payments.

Government appeal to employers

The department headed by Yolanda Díaz expects the employers to change their position today, as stated by the Secretary of State for Labour, Joaquín Pérez Rey, who has called for social dialogue and a review of the figures so far on the table.

The Ministry considers the employer's proposal insufficient, as the SMI increase is 1.5%.

Proposals on the table

The Secretary of State for Labour has not indicated the amount of the increase and has been cautious about the taxation of the SMI, indicating that the decision will be discussed with the social partners beforehand. It is clear, however, that the amount of the increase will be moved within the parameters recommended by the Committee of Experts.

This would mean an increase in the minimum wage to €1,221 per month, in fourteen instalments, in the first case, or €1,240 per month, if you choose to pay the tax. The Government is committed to maintaining the tax exemption, which would place the starting point of the negotiation at an increase of 3.1%. 

Conflicting positions between unions and employers

The trade unions are proposing an initial increase of 7.5% by 2026, raising the SMI to EUR 1,273 per month before paying taxes, while employers are proposing an increase of up to 1.5%, to EUR 1,202 per month, although this increase is conditional on compliance with the absorption and compensation rules of the Workers' Statute.

One of the critical points of the negotiation is the reform of the absorption rules. At present, the Ministry of Labour and the trade unions want to eliminate the possibility of the pluses and supplements absorbing the rise of the SMI, a decision that the CEOE has opposed.

The agreement will be difficult. In recent years, the Government has failed to agree to an increase in the SMI with the employers. The CEOE and Cepyme last agreed to an increase in 2020. Since then, the increases in the minimum wage have only been agreed with the trade unions. This dynamic could be repeated if there is no progress at the social dialogue table.

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