The Government approves the Minimum Interprofessional Wage raise up to 1,184 euros per month
- 11 March 2025
- Business Consultancy
The Council of Ministers has approved a new increase in the Minimum Interprofessional Wage (MIW) for 2025, raising it to 1,184 euros per month in 14 payments. This represents an increase of 4.4% over the previous year, which will benefit more than 2.1 million workers in Spain. This increase will be applied retroactively from January 1, 2025.
How does the increase in the minimum wage affect workers and companies?
The minimum wage raise has a direct impact on various sectors of the economy, mainly those with a high concentration of low-wage workers, such as the hotel and catering industry, commerce, agriculture and services. In particular, this increase will benefit young people, women and employees with temporary contracts to a greater extent.
On the other hand, companies will have to adjust their wage costs, which could have an impact on hiring, especially in small and medium-sized businesses. Some sectors have expressed their concern about this issue, while trade unions have welcomed the measure as a necessary step to improve workers’ purchasing power.
Debate between the Government, unions and employers
The measure has been agreed between the Government and the trade unions Comisiones Obreras (CCOO) and the Unión General de Trabajadores (UGT), while the business organizations CEOE and Cepyme have not supported the decision. The businessmen consider that an increase of 3.4% would have been more appropriate, arguing that a higher increase could generate economic difficulties in some sectors
Another point of debate is the exemption of the MIW in Personal Income Tax (PIT), an issue that is still pending resolution by the Ministry of Finance.
Impact on social contributions and benefits
With the increase in the MIW, Social Security contributions also increase, which has an impact on unemployment benefits and future pensions. In addition, this increase may influence subsidies and economic aid linked to the MIW, such as unemployment benefits, the Minimum Vital Income or aid to families in vulnerable situations.
How to adapt your company to the increase in the MIW?
Companies must review their salary structure and adjust work contracts to comply with the new regulations. To do so, it is advisable to have specialized advice to minimize the impact on cost management and financial planning.
If you have any doubts about how this increase in the MIW may affect your company or employment situation, contact the Labor Department of CINC Consultancy. Our team of experts can assist you by resolving any queries and help you efficiently adapt to the regulatory changes.
