Minimum Wage (SMI) Update: Payslips & Social Security Contributions

The base salary on your payslips may need to be updated.

On 28 September, the Council of Ministers approved a 1.57% increase to the Spanish national minimum wage, in line with the agreement reached between the Government and trade unions, despite opposition from employers' associations.

Article written by

Lola García

Employment lawyer

Labour lawyer.

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Accordingly, on 29 September the Spanish Official Gazette (BOE) published Royal Decree 817/2021, of 28 September, setting the minimum wage (SMI) for 2021.

The minimum wage (SMI) has been set at €965.00 per month across 14 payments, which equates to:
- Daily minimum wage (SMI): €32.17
- Monthly minimum wage (SMI): €965.00
- Annual minimum wage (SMI): €13,510.00

These new amounts take effect from 1 September 2021. We therefore wish to advise you that there is an obligation to adjust the relevant figures in line with this increase, where applicable, both in terms of salary and with regard to reporting the increase in the Social Security contribution base.

If you would like us to manage your payroll as your Labour Law advisers, please get in touch with us directly. 

Yours sincerely,

Conesa Legal