Work improves the proposal of the experts and raises the SMI by 5.3% in 2027, up to 1,286 euros

The Ministry of Labor and Social Economy has prepared a draft royal decree in which it sets an increase to the Minimum Interprofessional Wage (SMI) for 2027 of 5.3%, up to 1,286 euros per month in 14 payments (42.87 euros per day) or a total of 18,004 euros per year. This is stated in the text that the Ministry of Labor has submitted for review and public participation and that places the SMI increase above the 4.9% suggested by the panel of experts that advises the Government on this matter. In addition, this 5.3% figure is lower than the 7% demanded by CCOO and UGT. The Ministry of Yolanda Díaz has set a deadline until November 16 to submit allegations to this draft Royal Decree. The Government’s intention is to try to approve the SMI increase before the general elections of November 29. According to the draft, the 5.3% increase is based on the report issued this week by the panel of experts. The explanatory memorandum states that this SMI increase addresses the right to equitable and sufficient remuneration and continues the objective that this minimum income reach 60% of the average wage, in line with the European Social Charter and the resolutions of the European Committee of Social Rights. With regard to compensation and absorption, the project provides that the wage revision will not affect those professional salaries that, as a whole and on an annual basis, already exceed the minimum 18,004 euros provided for. Only those salaries that fall below that annual threshold will have to be increased until they reach it. Likewise, the royal decree includes a transitional provision of "no effect" in order to prevent distortions in areas outside of work. For this reason, the new amount will not be automatically applied to regional or local rules that use the SMI as an indicator to grant public aid or benefits, nor to private contracts and agreements that have it as a reference, unless the parties or the sectoral regulations expressly provide otherwise. In such cases, the value of the SMI prior to the entry into force of the new regulation will be maintained throughout 2027. The draft sets specific pay for groups with short-duration contracts and domestic work. Thus, workers with fixed-term contracts whose services in the same company do not exceed 120 days will receive as a minimum 60.88 euros per legal working day, an amount that includes the proportional part of Sundays, public holidays, and the two extraordinary gratifications. In the case of domestic workers, the minimum wage for those who provide services under an external hourly arrangement is set at 10.06 euros per hour actually worked, incorporating all pay-related concepts. The text specifies that, in all wage modalities, only remuneration in money is computed, and that in-kind salary may not reduce the full amount set by law.