Government has approved the Minimum Interprofessional Wage (SMI) at 1,184 euros per month in 14 payments and retroactive to January 1, 2025.
February 11, the Council of Ministers approved, at the proposal of the Ministry of Labor and Social Economy, the Royal Decree fixing the Minimum Interprofessional Wage (SMI) for 2025, setting it at 1,184 euros per month in 14 payments, which represents an increase of 4.41% with respect to 2024. This increase, agreed with the main labor unions, has a retroactive effect as from January 1, 2025.
What is the impact of this measure?
Some 2.4 million workers will benefit from this increase, especially women and young people: ️ 65.8% of the beneficiaries are women. ️ 26.8% are young people between 16 and 24 years old. The most affected sectors: Agriculture (31%), Services (14.3%), Industry (5.9%) and Construction (3.4%).
New SMI amounts 2025
- Daily minimum wage: 39.47 euros.
- Monthly minimum wage: 1,184 euros.
- Annual SMI: 16.576 euros.
- For temporary and seasonal workers: 56,08 euros/día.
- For domestic employees: 9,26 euros/hora.
The minimum wage has experienced remarkable growth over the last decade:
- From 2018 to 2025, the SMI increased by 61%, while inflation grew by 23%, representing a gain in purchasing power of 38%.
- 2019 saw the largest year-on-year increase, up 22.3%, raising the SMI from €735.90 to €900.
- In 2024, the SMI was set at €1,134, up 8% from 2023.
What is the impact of this increase on companies and self-employed workers?
- Increase in labor costs: Companies will have to update the salaries of those employees who are below the new SMI, which may imply adjustments in costs and budgets.
- Review of contracts and payrolls: It is essential to review labor contracts to ensure compliance with the new regulations.
- Impact on social security contributions: Workers who pay contributions under the general regime will see an increase in their minimum contribution bases.
The increase in the SMI follows the trend of revaluation of the minimum wage with the aim of guaranteeing a decent remuneration. If you are an employer, it is essential that you adapt your payroll and salary structures as soon as possible. If you need advice on how to manage this change, our team is at your disposal.
For further information, please consult with Labor Consulting
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