The increase in the minimum wage

On 31 January 2023, it was announced by the President of the Government that the Minimum Interprofessional Wage (SMI) would rise to a minimum of €1080. This is the second increase in the SMI in less than 6 months.

The question that may arise is, "does the rise in the SMI affect me?". This question does not have only one valid answer, as the answer is yes, but with nuances, as it will depend on the situation of each person, which we are going to analyse below.

If the salary you are currently receiving is higher than the current minimum wage:

In theory, people who earn more than the minimum wage are not affected by the wage increase, but this is not entirely the case.

As some experts mention, raising the minimum wage also raises the wage base of all lower pay grades. Thus, after the increase in the lowest salaries, those with the next higher salaries must also raise their salaries to maintain the pay differentials between categories.

If my working hours are less than 8 hours and I am paid less than the minimum wage:

The amount referred to in the SMI is for those jobs that work 40 hours. If you work less than 40 hours, you will receive the amount proportional to the number of hours worked with respect to the legal maximum.