Spain Approves Minimum Wage Increase to Exceed €1,200

Spain continues its efforts to improve workers’ living conditions, after the Minister of Labor and the Spanish government, together with the two largest labor unions, agreed to raise the monthly minimum wage to €1,221 in 14 annual installments, effective from January 1, 2026.

Officials announced that this increase represents a 3.1% rise compared to 2025, adding approximately €37 per month to the income of lowest-paid workers.

It is expected that around 2.5 million workers across various sectors will benefit from this decision.

Despite the labor unions’ approval, major employers’ organizations such as CEOE and Cepyme did not participate in the agreement, expressing opposition to the proposal and concerns about its impact on small and medium-sized enterprises.

The government confirmed that the increase will be applied retroactively from the beginning of the year, with measures in place to prevent the rise from being offset by other compensations or allowances in salaries, ensuring the full financial benefit reaches workers.

This step is part of Spain’s ongoing policy in recent years to raise the minimum wage, aiming to boost purchasing power and reduce social inequality.

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