Spain's Minimum Wage Hike and Other Key Government Decisions: What Expats Need to Know

In a significant move to address economic inequality and support workers, the Spanish government has announced several key decisions that will impact the lives of many, including expats living in Spain.

Minimum Interprofessional Wage (SMI) Increase

On February 11, 2025, the Council of Ministers, led by Second Vice-President and Minister for Work and Social Economy Yolanda Díaz, approved an increase in the Minimum Interprofessional Wage (SMI) to €1,184 per month, paid in 14 installments. This represents a rise of €50 per month and €700 per year, effective retroactively from January 1, 2025. This change benefits nearly 2.5 million workers across Spain.

Since 2018, the minimum wage has increased by 61%, translating to an additional €6,273 per year. Díaz emphasized the importance of these increments, particularly for families in need, and highlighted that this increase has reduced inequality by 18%.

Impact on Women and Young People

The increase disproportionately benefits women, who make up 65.8% of the recipients, compared to 34.2% men. The gender gap is significant, with 17.6% of women receiving the SMI, while only 8.5% of men do. Young people under 25 years old also constitute more than a quarter of the beneficiaries.

Regional and Sectoral Impact

Regions such as Andalusia, Madrid, Catalonia, and Valencia have the highest number of beneficiaries. In relative terms, Extremadura, the Canary Islands, Murcia, and Andalusia see the highest percentage of wage earners affected. The agricultural and service sectors are particularly impacted by this measure.

Governance of the Mar Menor

In addition to the wage increase, the Council of Ministers has also regulated the system for the constitution, composition, and operation of the representation and governance bodies of the Mar Menor and its basin. Announced by Minister for Ecological Transition Sara Aagesen, this measure implements the legal personality of the Mar Menor, a law approved in 2022. This innovative approach, recognized internationally by the United Nations, treats the Mar Menor ecosystem as a subject with its own charter of rights.

Appeal Against the Repeal of the Law of Historical and Democratic Memory of Cantabria

The Council of Ministers has also decided to challenge the Law of Cantabria 1/2024 in the Constitutional Court. This law repeals the Law of Historical and Democratic Memory of Cantabria. Minister for Education, Vocational Training and Sports, and Government Spokesperson Pilar Alegría announced this decision, citing the government's previous actions against similar repeals in Aragon. The government is seeking to protect the historical and democratic memory laws through legal avenues.

These decisions reflect the Spanish government's commitment to addressing economic inequality, protecting natural ecosystems, and preserving historical memory, all of which are crucial for the well-being and stability of the country and its residents, including expats.