The 2026 Minimum Interprofessional Salary (SMI) has not yet been officially approved, but there are already solid forecasts regarding its possible amount, the estimated increase, the date it will come into effect, and its impact on payroll, contributions, and collective agreements. In Spain, the minimum wage is known as Salario Mínimo Interprofesional (SMI). Although often translated as “Interprofessional Minimum Salary”, the correct international equivalent is Spain’s minimum wage.
In this post, we explain what is known to date about the 2026 SMI, its projected increase, how it will affect companies in terms of labor costs, payrolls, and collective agreements, and how to prepare your company before the corresponding Royal Decree is published.
The confirmed and relevant information refers only to the 2025 SMI, set by Royal Decree 87/2025 of February 11.
What is the Minimum Wage in Spain (SMI)?
Index of contents
The SMI is the minimum wage that any worker must receive, regardless of the sector or collective agreement.
Factors that the government takes into account when setting the SMI
The amount of the minimum wage is determined in accordance with Article 27 of the Workers’ Statute, which requires the government to evaluate a series of economic and social criteria before approving each update by Royal Decree.
The process is complemented by negotiations between the government and social partners. However, the final decision rests with the executive, which specifies the amount by Royal Decree. This decree establishes the monthly and daily figures, the reference to extraordinary payments, and the rules applicable to part-time workers and domestic workers.
The main factors influencing the setting of the SMI are:
- The evolution of the CPI.
- Productivity indices.
- The share of labor in national income.
- The country’s overall economic situation.
In addition, the government compares these criteria with the European Social Charter, which recommends that the net minimum wage be approximately 60% of the average wage. This reference explains the upward trend recorded in recent years.
The latest amount approved is that of the 2025 minimum wage, set by Royal Decree 87/2025 of February 11, which serves as a reference for projecting estimates for the 2026 minimum wage until the new decree is published.
What will the minimum wage in Spain be in 2026?
There is currently no official figure for the 2026 minimum wage, and therefore it is not possible to say with certainty how much it will be or how much it will increase compared to previous years. Preparatory meetings between the government and social partners have begun, following the usual social dialogue process. The aim is to agree on an increase that improves pay conditions without compromising competitiveness or employment.
Official forecast for Spain’s 2026 minimum wage: possible increase scenarios
In this context, some estimates place the possible increase at around 3.5%, although these are only indicative scenarios. For legal prudence, it is advisable to work with an estimated range, which places the 2026 minimum wage between €1,220 and €1,240 gross per month in 14 payments, always on a provisional basis and without regulatory backing.
Negotiations on the minimum wage often continue even after January 1. However, when it is finally approved, the Royal Decree establishes retroactive effects from the beginning of the year, which requires payroll and social security contributions to be adjusted.
The Ministry of Labor has also expressed its intention to strengthen the base salary structure, preventing minimum wage increases from being applied exclusively through absorbable supplements. This could have practical implications for companies whose remuneration policy relies heavily on these concepts.
Finally, it should be remembered that the minimum wage continues to be guided by the standard set by the European Social Charter, which recommends that the net minimum wage should be around 60% of the average wage. This reference explains the sustained upward trend in recent years and suggests that 2026 will continue along the same lines.
| Year | Daily minimum wage | Monthly minimum wage (14 payments) | Annual minimum wage | Royal Decree | Status |
|---|---|---|---|---|---|
| 2024 | 37,80 € | 1.134 € | 15.876 € | RD 145/2024 | Approved |
| 2025 | 39,46 € | 1.184 € | 16.576 € | RD 87/2025 | Approved |
| 2026 | ≈ 40,66 – 41,33 € | 1.220 – 1.240 € (estimado) | 17.080 – 17.360 € | — | Pending |
How the 2026 minimum wage will affect your company’s payroll
The increase in the minimum wage has a direct and significant impact on the remuneration structure of many companies. Although the official figure for 2026 is not yet known, it is possible to anticipate how it will affect payroll.
Company cost per employee
Firstly, the update to the base salary means that any remuneration below the legal threshold must be reviewed. This adjustment particularly affects sectors with tight salary scales (hospitality, retail, security, and agriculture) and companies that apply absorbable supplements. If the sum of the base salary and supplements does not reach the minimum wage, the company must adjust it, even if the collective agreement has not been updated.
Effects on minimum contributions
Secondly, the minimum wage affects the minimum contribution base, which has an impact on both the employee’s and the employer’s contributions. A higher minimum base means an automatic increase in contributions, affecting the total cost of the job. This is particularly relevant in part-time contracts, where a small increase in the minimum wage can alter the proportionality of the bases and require payrolls to be recalculated.
Effects on income tax withholding
Likewise, an increase in the minimum wage may modify income tax withholding, especially for workers who are at the minimum withholding threshold. Although many workers close to the minimum wage have very low or even non-existent withholdings, changes in remuneration may alter the brackets or generate variations in the final adjustment.
2026 minimum wage in Spain for part-time and domestic workers
Companies must also consider how the minimum wage is projected in specific situations, such as part-time work or employment in the family home. In both cases, the minimum amount is determined by applying the exact proportionality with respect to the minimum wage of a full-time worker.
For part-time work, this means that a 50% contract should be expected to pay between €610 and €620 per month in 2026, depending on the estimated range. A 75% contract would have a minimum salary of between €915 and €930 per month. In all cases, the company must ensure that the remuneration remains in line with the proportional legal minimum.
In the case of domestic workers, the amounts are also set by Royal Decree. Until the 2026 minimum wage is approved, we will not know the exact amounts. They are expected to follow the same growth as the general minimum wage, with adjustments for both monthly remuneration and the minimum hourly rate for hourly contracts.
2026 minimum wage increase in Spain and its impact on collective agreements
The SMI operates as a mandatory minimum wage, meaning that any professional category whose base salary falls below it must be updated immediately, even if the collective agreement has not been revised. This may require companies to review their pay scales even if the collective agreement has not yet been updated, as the minimum wage takes precedence over conventionally set remuneration.
The most technical issue is the absorption and compensation of supplements. Some agreements allow certain supplements to be absorbed in order to reach the SMI; others expressly prohibit this. Reviewing this clause is essential to avoid calculation errors.
In sectors with very tight remuneration, the update of the SMI can have a significant impact on the overall salary structure and on company budgets.
How to calculate the impact of Spain’s minimum wage on your company
The increase in the minimum wage affects labor costs differently depending on the sector, the wage structure, and the weight of supplements in the worker’s remuneration. Therefore, before the Royal Decree of 2026 is published, it is advisable to analyze how the base salary, the contribution base, and the employer’s contribution will vary in scenarios of moderate increases.
This simulation allows us to quickly visualize the effect that an increase in the minimum wage would have on a base salary close to the minimum.
| Concept | Current situation | SMI 2026 scenario (€1,220) | SMI 2026 scenario (€1,240) |
|---|---|---|---|
| Monthly base salary | 1.190€ | 1.220€ | 1.240€ |
| Required monthly increase | — | +30€ | +50€ |
| Annual salary increase | — | +420€ | +700€ |
| Estimated annual increase including contributions | — | ≈ +500€ | ≈ +750€ |
| Total impact per worker | — | Moderate increase | High increase |
In addition, it is advisable to check whether the company uses absorbable supplements that can partially offset the increase or whether, on the contrary, the collective agreement requires a direct revaluation of the base salary. This preliminary analysis prevents payroll errors and ensures regulatory compliance from the first month of the fiscal year.
How LEIALTA helps you assess the impact of the minimum wage
At LEIALTA, we analyze how the minimum wage increase affects your salary structure, reviewing the positions that need to be adjusted, the correct application of supplements, and the effect on the minimum contribution base. Our labor team prepares clear simulations consistent with your agreement so that you can apply the increase with legal certainty and without payroll deviations.
If you need expert support to anticipate the impact of the SMI on your workforce, our labor team can accompany you throughout the process.
Frequently asked questions about Spain’s minimum wage (SMI) 2026
How has the SMI evolved in recent years?
The Interprofessional Minimum Wage has experienced a sustained upward trend since 2019, driven by the goal of approaching 60% of the average wage recommended by the European Social Charter. The recent evolution is as follows:
- 2019: €900/month
- 2020: €950/month
- 2021: €965/month
- 2022: €1,000/month
- 2023: €1,080/month
- 2024: €1,134/month (RD 145/2024)
- 2025: €1,184/month (RD 87/2025)
- 2026: Pending approval
The trend shows significant annual increases that directly impact labor costs, contributions, and collective agreements.
Does the minimum wage apply to part-time contracts?
Yes. The minimum wage always applies proportionally to the hours worked.
This means that a part-time worker is entitled to receive the proportional part of the minimum wage set for a full-time worker.
For example:
- 50% contract → 50% minimum wage.
- 75% contract → SMI proportional to 75%.
The company must ensure that the total remuneration (base salary + absorbable salary supplements) reaches that proportional minimum.
In addition, the increase in the SMI also affects the minimum contribution base for part-time contracts, which may increase employer contributions.
What supplements can be counted towards the minimum wage?
Only supplements that are:
- Salary-based (part of regular remuneration).
- Absorbable and compensable.
- Not linked to specific job conditions (such as night work, hazardous work, shift work, or productivity).
Therefore, the following can be counted:
- Absorbable personal supplements,
- Absorbable voluntary supplements,
- Absorbable voluntary bonuses.
The following do not count towards the minimum wage:
- Non-salary supplements (allowances, transportation, tool wear and tear, compensation),
- Supplements linked to specific working conditions (night work, shift work, holidays),
- Overtime and additional hours,
- Distance or transportation bonuses if they are non-salary in nature.
Can a company absorb supplements with the increase in the minimum wage?
It depends on the collective agreement and the type of supplement.
The general rule is that it can do so when the supplements are absorbable and compensable, and the agreement does not expressly prohibit it.
The company can absorb the increase in the minimum wage when:
- There is a voluntary or personal salary supplement,
- This supplement does not respond to special working conditions,
- The agreement allows absorption.
The company cannot absorb when:
- The agreement prohibits absorption,
- The supplement compensates for special conditions (night work, hazardous work, shift work, etc.),
- They are non-salary items.
The company must review the applicable collective agreement, the nature of each supplement, and the compensation rules established in the agreement itself.
At LEIALTA, we carry out this analysis with a direct impact on payroll and salary structure.
How does the minimum wage affect wage garnishments and public benefits?
The minimum wage is used as a reference by various legal and economic institutions.
In wage garnishments, Article 607 of the Civil Procedure Act establishes that wages equivalent to the minimum wage are exempt from garnishment. Higher percentages are calculated in increments above the minimum wage. For example:
- First bracket: 0% garnishable (up to the minimum wage).
- Second bracket: 30% garnishable between the minimum wage and 2× the minimum wage.
And so on.
An increase in the minimum wage increases the non-garnishable portion, protecting more of the worker’s income.
In subsidies and public benefits, the minimum wage can influence:
- Requirements for access to certain unemployment benefits (e.g., income below 75% of the SMI),
- Aid or benefits that calculate income limits based on the SMI,
- Certain minimum amounts associated with the Social Security system.
- The increase in the SMI not only affects payroll and contributions, but also legal obligations and social protection.
Do I have to update salaries even if the collective agreement has not been revised?
Yes. The minimum wage acts as the necessary legal minimum: no base salary can be below it, even if the agreement has not been updated.
This means:
- Adjusting base salaries,
- Reviewing the absorbability of supplements,
- Regularizing contributions.
The legal priority of the SMI is absolute over any lower salary scale, even if the agreement is pending review.
