The national minimum wage (SMI) will remain at €1.221 gross per month, paid in 14 installments, for the remainder of 2026, after the government ruled out any extraordinary review to compensate for rising inflation. The Ministry of Labor, headed by Yolanda Díaz, has already turned its attention to negotiating the 2027 increase, a process that will begin in the coming weeks with the formation of the committee of experts and the subsequent meeting with social partners. The Secretary of State for Labor, Joaquín Pérez Rey, confirmed this during the press conference following the release of the August unemployment figures.
The decision comes amid rising prices, with the year-on-year CPI reaching 4,3% in August, the highest since February 2023, driven by fuel price increases resulting from the conflict in the Middle East. Inflation is eroding the purchasing power of the approximately 2,5 million workers earning the minimum wage, as well as those covered by collective bargaining agreements with increases of around 3%. The government's refusal to activate the six-monthly review clause, included in Article 27 of the Workers' Statute, has drawn criticism from unions , which consider the measure essential to prevent the impoverishment of the most vulnerable groups.
A resounding no to the extraordinary increase in 2026
The Ministry of Labor has made it clear that there will be no further increase to the minimum wage for the remainder of the year. Pérez Rey explained that the priority now is to begin negotiations for 2027, and that this process will take into account recent inflation. “Our role is to continue with minimum wage increases,” he stated, adding that “it is essential that the Government implement measures to prevent any kind of impoverishment.” The Government prefers to focus its efforts on the next increase, which will be implemented through a royal decree-law, following the standard procedure of recent years.
Second Vice President Yolanda Díaz had left the door ajar for an exceptional review if inflation were to skyrocket, but ultimately the government's economic wing prevailed. First Vice President Carlos Cuerpo also commented on the matter, assuring that the committee of experts would take price trends into account when drafting its proposal for 2027. This announcement comes at a time when the loss of purchasing power is already a reality: the increase approved for 2026 was 3,1%, while the CPI has been above that figure for several months . Workers with lower wages are losing at least one percentage point of purchasing power, and this gap could widen if inflation does not subside.
The unions are putting pressure on and demanding an ambitious wage agreement.
The UGT was the first union to react to the government's refusal. In a statement, it demanded the "immediate convening" of the social dialogue forum to review the minimum wage in accordance with the wage guarantee clause of the Workers' Statute. The union, led by Pepe Álvarez, believes that "the law provides for this review and there is no reason to delay a decision that is necessary to protect the living conditions of workers." The organization also calls for a new Agreement for Employment and Collective Bargaining (AENC) with a minimum annual wage increase of 4% for the period 2026-2028 , supplemented by additional increases of 1%, 2%, or 3% for collective agreements with wages below the average.
For its part, the CCOO union has joined the demands, insisting that the recovery of purchasing power can no longer be postponed. The general secretary of the services federation, José María Martínez, warned that if real progress is not made, labor disputes will increase and collective bargaining will suffer. The unions have already presented their proposal for a major agreement to the CEOE employers' association, but so far the business organizations have not shown a clear willingness to negotiate. The unions' demands clash with the business position, which considers that the minimum wage has already exceeded its target of reaching 60% of the average wage and that further increases could jeopardize job creation.
Soaring inflation and the European comparison
The latest CPI figure, 4,3% in August, has once again highlighted the vulnerability of the lowest wages. The National Statistics Institute (INE) attributes this increase to rising fuel prices and a smaller decrease in food prices compared to the previous year. This figure is particularly significant because it exceeds the forecasts made at the beginning of the year, when the minimum wage increase was set. The situation is even more worrying when comparing minimum wages across countries , placing Spain among those with the lowest projected gain in purchasing power of the minimum wage in 2026, only ahead of Romania and Poland. The study indicates that real increases in Spain were less than 1%, while countries like Slovenia and Hungary registered increases of over 8%.
Eurofound also highlights that, over the last decade, Spain has accumulated a real increase in the minimum wage of around 45%, a figure that remains above the European average, but which has not prevented the inflationary crisis from hitting the most vulnerable workers hard. The European agency acknowledges that its data has become outdated due to subsequent price increases and that several countries, such as Belgium and France, have already implemented automatic adjustments to compensate for the loss of purchasing power. Spain, however, has not activated this clause, leaving minimum wage earners at a disadvantage compared to other wages in Europe.
A decade of steady increases
The minimum wage has risen from €735,90 in 2018 to the current €1.221, representing a cumulative increase of 66%. This increase has been driven by the government's objective of complying with the European Social Charter, which recommends setting the minimum wage at 60% of the average gross salary in Spain . However, the Spanish Confederation of Employers' Organizations (CEOE) criticizes the fact that this target has already been reached and even exceeded in many provinces, where the minimum wage represents more than 70% of the average salary. Business leaders warn that these continued increases could have a negative impact on employment, especially in sectors with lower profit margins.
The negotiations for 2027 are presented as an opportunity to correct the gap created by inflation. The committee of experts, which has already issued its opinion on other occasions, will have to propose an increase that takes into account price deviations. The Ministry of Labor insists that social dialogue will be the channel for reaching an agreement, and that the increase will be implemented “with the utmost transparency.” Also pending is the development of the decree that will regulate the absorption and compensation of the minimum wage, as well as the transposition of the European directive on adequate minimum wages , a commitment that the Government assures will be fulfilled “as soon as possible.”
Meanwhile, lower-wage workers continue to lose purchasing power amid rising prices. The government's decision to wait until 2027 to compensate for this loss has sparked intense political and social debate. Unions have announced protests if the dialogue table is not convened before the end of the year, while employers have called for moderation in wage increases to avoid jeopardizing companies' competitiveness.
In short, the situation of the minimum wage in Spain reflects the tension between the need to protect the most vulnerable workers and the demands of an uncertain economic environment. The government, which has already ruled out an exceptional measure for 2026, will have to demonstrate its commitment to restoring purchasing power in the upcoming negotiations. The committee of experts, social partners, and business organizations will be the key players in what is expected to be an intense process. The increase by 2027 seems crucial to ensure that minimum wages do not fall behind price increases and that Spanish workers do not continue to lose ground to their European counterparts.
