The Ministry of Labor and Social Economy has launched this Thursday, October 8, the procedures to approve a new increase in the minimum interprofessional wage (SMI) before the general elections on November 29. The second vice president of the Government, Yolanda Díaz, has summoned the advisory committee responsible for studying its update, with the aim of establishing the amounts that will apply in 2027.
The initiative comes after the Executive approved in February an increase of 3.1%, which set the SMI at 1,221 gross euros per month in 14 payments, equivalent to 17,094 euros annually. The new review aims to respond to the increase in prices and avoid a loss of purchasing power among workers with lower wages, although there is still no official proposal on the percentage of increase.
The electoral advance has led Labor to accelerate a procedure that usually takes place during the last months of the year. However, the call for elections does not guarantee that the increase will be approved before November 29, since the report from the experts, consultations with social agents, and the final approval from the Government still need to be completed.
Who would benefit from the increase
The update of the SMI would directly affect employees whose remuneration is below the new legal minimum, regardless of the sector in which they carry out their activity or the type of contract.
Among the included groups are agricultural, industrial, and service workers, temporarily hired individuals, and domestic workers, for whom the regulations also establish a minimum hourly wage when providing services externally.
In the case of part-time contracts, the amount is applied proportionally to the hours worked, while full-time workers must receive, at a minimum, the legally established annual remuneration.
However, the increase in the SMI does not necessarily imply an automatic increase in all salaries close to that amount. The current regulations allow for the application of compensation and absorption mechanisms for certain salary supplements when the total remuneration of the worker, calculated on an annual basis, already exceeds the minimum required, without prejudice to what is established in collective agreements.
How much could the minimum wage increase in 2027
The amount of the next update remains pending on the report that must be prepared by the Advisory Commission for the Analysis of the Minimum Interprofessional Wage, whose first meeting is scheduled for this Thursday under the presidency of Yolanda Díaz.
The experts must study the evolution of wages and prices before recommending a range of increase that serves as a reference for subsequent consultations with unions and business organizations.
For the moment, one of the main references comes from CCOO, whose general secretary, Unai Sordo, has argued that the minimum wage should increase by more than 5% in 2027, in light of the rising cost of living. This union position does not constitute a proposal approved by the Ministry nor does it necessarily anticipate the final decision of the Executive.
What steps are needed to approve the increase
This Thursday's meeting constitutes the first step of the procedure. Once the advisory commission has prepared its recommendations, the Ministry of Labor must address the update with the union and business organizations, although the legislation does not require reaching an agreement to establish the new amount.
Article 27 of the Workers' Statute assigns to the Government the competence to set the minimum wage annually, after consulting with the most representative union and business organizations, taking into account factors such as the consumer price index, productivity, and the evolution of labor's share in national income.
In the last six revisions, according to Europa Press, CEOE has not participated in the agreement to raise the minimum wage, which has not prevented the Government from approving the corresponding increases.
Once the consultations are completed, the Executive may approve the new amount through a royal decree, which must be published in the Official State Gazette. Unlike royal decree-laws, this regulation does not require parliamentary validation, so its approval does not depend on a vote in Congress or in the Permanent Deputation.
How the electoral advance influences
The call for elections on November 29 gives a political character to the processing, as the Ministry of Labor intends to have the update corresponding to 2027 approved before the elections are held.
The dissolution of the Cortes does not in itself prevent the Council of Ministers from approving a royal decree of these characteristics, given that the determination of the SMI corresponds to the Government and does not require a parliamentary vote.
The Government will maintain its powers until the celebration of the elections on November 29, when it will be in office until the investiture of a new president. From then on, its capacity for action will be more limited, although it will still be able to approve certain measures, including a review of the minimum wage, as long as it complies with the legal restrictions of that period.
The intention of the Ministry is to complete the procedure before November 29, but a specific date for its approval in the Council of Ministers has not yet been communicated. It has also not been determined whether the eventual increase will take effect from January 1, 2027, as happened with the review corresponding to 2026, whose retroactive application was expressly included in the royal decree published in February.