The Council of Ministers 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 and Union General de Trabajadores. 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 reduced personal income tax withholdings for those with low incomes.
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National Law Review, Volume XIV, Number 89