Salary Updates Following the Rise in the minimum wage (SMI)

Article written by

Lola García

Employment lawyer

Labour lawyer.

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On 28 September, the Council of Ministers approved a 1.57% increase to the national minimum wage (agreed between the Government and trade unions, with employers' associations voting against).

Accordingly, on 29 September the following was published in the Spanish Official Gazette (BOE): 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) of €37.01
• Monthly minimum wage (SMI) of €965.00 × 14 payments
• Annual minimum wage (SMI) of €13,510.00

These new amounts take effect from 1 September 2021. We therefore wish to inform you that, where applicable, there is an obligation to regularise amounts in line with this increase, both in terms of salary and the corresponding update to the Social Security contribution base.

Should you require assistance in regularising your situation with regard to payroll or Social Security contributions, please do not hesitate to contact us.