The minimum interprofessional wage (SMI) is the minimum amount that a worker must receive for performing their work activity during a given period of time. The SMI is set each year by the Government, after consultation with social partners, taking into account various factors such as the cost of living, productivity, employment, or economic growth.
In this article, we will analyze the minimum interprofessional wage increase for 2024, which represents a 5% rise compared to the previous year, and its implications for different sectors and groups. Keep reading!
On February 6, 2024, the Government approved Royal Decree 145/20241, which sets the minimum interprofessional wage for 2024 at 1,134 euros per month in 14 payments, or in other words, 39.90 euros per day or 6.25 euros per effective hour of work.
If you’re wondering, this increase means 54 euros more per month or 756 euros more per year than the 2023 SMI, which had been set at 1,080 euros per month in 14 payments.
And is the 2024 SMI increase retroactive? The answer is yes, from January 1, 2024. This means that workers who receive the SMI must be paid the corresponding difference for the months of January and February in their next payroll. In addition, it is important to note that the minimum exempt amount in the IRPF has also been raised to prevent SMI earners from having to pay taxes on this concept.
According to the Labor Statistics Bulletin from the Ministry of Labor and Social Economy, the SMI increase for 2024 will benefit more than 2.5 million people, which is equivalent to one in seven employees in Spain. Of these, one-third are women and young people, who are the groups most affected by job insecurity and the wage gap.
The SMI increase will also have a positive impact on people receiving social benefits linked to the SMI, such as unemployment benefits, minimum vital income, non-contributory pensions, or child support. Likewise, the SMI increase will improve the working conditions of those employed in sectors such as commerce, hospitality, agri-food, or domestic work.
This is not the first increase in the minimum interprofessional wage in Spain in recent years. In particular, 2019 saw a historic increase of 22.3%, rising from 735.90 euros per month in 14 payments to 900 euros. In 2020, the SMI rose by 5.5%, reaching 950 euros per month in 14 payments. Meanwhile, in 2021, the SMI remained at 950 euros due to the uncertainty caused by the pandemic.
In 2022, the SMI increased by 13.6%, reaching 1,080 euros per month in 14 payments. And in 2024, the SMI has been set at 1,134 euros per month in 14 payments, which represents 5% more than the previous year.
An important point: the 2024 minimum interprofessional wage increase is legally mandatory for all employers and employees, regardless of the sector, activity, company size, type of contract, working hours, or professional category. Therefore, no one can be paid or receive less than the legally established SMI, except for internship or training contracts, which have special conditions.
Any irregular situation in this regard can be claimed, either amicably or through the courts. Likewise, it can be reported to the Labor and Social Security Inspectorate. The deadline to claim or report unpaid SMI is one year from when the event occurs.
As explained earlier, the 2024 minimum interprofessional wage increase is retroactive from January 1. How will this appear on your payroll? Let’s explain.
In March, workers earning the SMI will receive 1,188 euros gross in 14 payments, broken down as follows:
From this amount, Social Security cotributions and IRPF (if applicable) must be deducted. If the worker is exempt from IRPF, the net payroll will be 1,035.67 euros, broken down as follows:
From April onwards, the gross payroll will be 1,134 euros and the net 991.67 euros, provided that no IRPF applies. These amounts may vary depending on each worker’s personal and employment circumstances.
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