The Council of Ministers has approved an increase in the monthly minimum wage for this year to €1,134 (about US $1,214) in 14 payments.

Key Points:

• The new minimum wage, which is expected to benefit an estimated 2.5 million workers, will be backdated to Jan. 1, 2024.
• The raise marks a 5% increase from the 2023 minimum wage and a 54% increase from 2018.
• The Council established new rules for transparent and predictable working conditions.

Background: The approval follows an agreement with the trade unions Comisiones Obreras (CCOO) and Union General de Trabajadores (UGT). In addition to the minimum-salary increases, the Council introduced new rules for employers to record conditions of work and employment. The new regulations prohibit on-call work and zero-hour contracts, meaning that workers won’t have to be permanently available to employers. In addition, the Council and reduced personal income tax withholdings for those with low incomes.