The President of the Government, Pedro Sánchez, has announced a new increase in the minimum interprofessional wage in 2023. This represents an increase of 8%, rising from 1,000 euros divided into 14 annual payments to 1,080 euros per month, retroactively.
However, what does it mean that this new measure is retroactive? This means that the employer or the company must pay said economic difference to their employees in the following payrolls, even if the worker is part-time. This increase will have a retroactive effect from January 1 and will be 60% of the average salary in Spain.
In addition, in the event that the worker’s salary is divided into 12 payments, the salary will reach 1,260 euros gross per month.
Before breaking down the new Minimum Wage based on the hours worked, it is important to take into account that the Workers’ Statute, in its article 31, includes the right of every worker to receive two extra payments a year. Normally, they are charged in summer and at Christmas, although collective agreements may include other dates or even the right to three extraordinary payments.
The extra payments are not quoted, but they do have personal income tax withholding. But who decides when they are prorated? The Workers’ Statute indicates that it may be agreed in a collective agreement that extraordinary bonuses be prorated over the twelve monthly payments. This means that, initially, the bonuses are not paid pro rata, unless the collective agreement allows it or it is expressly agreed with the worker.
If we talk about the Minimum Interprofessional Salary in 2023 based on the hours worked, the amounts would be as follows:
- MSI in 14 payments: 1.080€.
- MSI in 12 payments: 1.260€.
- Annual MSI: 15.120€.
- Daily MSI: in 14 payments (36€), in 12 payments (42€).
- MSI for eventual and temporary contracts: 51,51€.
- MSI per hour for domestic workers: 8,45€.
In the case of having a part-time contract, that is, 20 hours a week, you will charge €630 per month with the new SMI.
Which workers does the increase in the minimum wage affect?
As for the profile of the people affected by this increase, according to Unai Sordo from Comisiones Obreras, it would be “a woman between the ages of 16 and 34, with a temporary contract and who works in the agri-food sector or in services.” In addition, this rise also impacts young people, since having less professional experience is more likely to be exposed to lower salaries.
Article 27 of the Workers’ Statute Law establishes that the Government sets the minimum interprofessional wage taking into account the consumer price index, the national average productivity achieved, the increase in labor participation in national income and the current situation overall economics.
What happens to workers without a collective agreement?
Workers without a collective agreement will benefit more from the measure because their wage regulation is governed by the interprofessional minimum wage. That is, the total annual salary to be received cannot be less than the minimum wage.
How does the increase in the SMI affect subsidies and compensation?
The rise in the minimum wage will also affect the collection of subsidies for the unemployed over 45 years of age with family responsibilities, the benefit for those over 52 years of age or extraordinary unemployment pay.
Inflation has hit families’ pockets since last year, when prices grew by an average of 8.4% due to the rise in food and energy bills. To try to counteract the rise in prices, the Executive has increased pensions by 8.5% this year and has also improved the salary of public workers (2.5% plus an additional point depending on objectives in 2023). Most companies have also increased the remuneration of their employees, some in double digits to offset inflation, although the average increase in the agreements is around 2.8%. But prices have risen rapidly and families see how their salaries are enough to buy fewer things.
The highest paid professions in Spain
E-commerce specialist
A junior profile earns between €20.000 and €30.000 per year in Spain, while a senior profile can earn up to €40.000 or €60.000 gross per year.
Data analyst
Entry-level positions start with an income around €24.000 euros per year, while more experienced professionals can receive anywhere from €45.000 to €68.000 gross per year.
Web analyst
The most experienced professionals can receive between 45.000 to 68.000 euros per year.
Cloud architect
The average salary of a cloud architect is 50.000 euros gross per year, and can reach €70.000 per year.
Cybersecutiry specialists
It is one of the highest paid profiles in the technology sector. The average salary is between 30.000 and 60.000 euros gross per year in Spain, being able to earn up to 66.000 euros per year.
Lawyer specializing in data protection and privacy
The average salary is 50.000 euros a year in Spain, although it varies according to experience, the company and its location.
Specialist in artificial intelligence
The salaries of experts in this sector are around €30.000 y €60.000 gross per year in Spain.
UX/UI expert
Experts in User Experience and User Interface. Depending on the level of experience, the salary varies from €18.000 to €40.000 gross per year in Spain.
Digital marketing
Entry-level positions start at around €21.000 per year, while more experienced professionals can earn up €60.000 gross per year.
Automation engineer
The average salary of these professionals is 35.000 euros per year, although they can receive up to 45.000 euros per year.
