Trabajo puts into motion the increase of the minimum wage for 2027 with the aim of approving it before the 29N.

According to the information available as of October 7, 2026, the increase of the interprofessional minimum wage (SMI) for 2027 is not under parliamentary processing. There is not yet a bill or a specific legislative proposal regarding the 2027 SMI registered in the Congress or the Senate: the process is in the preliminary phase of technical preparation and social dialogue within the Government.

In parallel, there are indeed parliamentary initiatives related to the SMI (bills and numerous non-legislative proposals to adjust the IRPF to the SMI, territorialize it, incentivize hiring, etc.), but their purpose is complementary (taxation, SMI structure, employment incentives…) and do not legally condition whether the 2027 SMI is set or not: the amount of the minimum wage is approved by Government Royal Decree, not by a law processed in the Cortes.

Current situation of the 2027 SMI

The Government has indicated that the negotiation on the 2027 SMI will be addressed in the last part of 2026, once the year has progressed and inflation is already known. The Secretary of State for Labor has explained that, after the summer, the specific social dialogue table for this increase will be set up and that price evolution will be a central factor in the debate. For now:

• There is no official figure proposed for 2027.
• No text has been sent to the Congress or Senate to set the 2027 SMI.
• The movements taking place are of a political and technical nature: positions of unions and employers, public announcements, and preparation of the administrative file.

Therefore, to your literal question, the answer is that the 2027 SMI increase is outside parliamentary processing and within the prior executive phase (reports, negotiation, and future approval by the Council of Ministers).

Steps remaining until final approval

The path ahead, following the usual scheme of recent years, is as follows:

1. Activation of the Expert Commission on the SMI
   The Ministry of Labor convenes the advisory commission to prepare a technical recommendation on how much the SMI should increase in 2027, taking into account:
   • Accumulated and forecast inflation.
   • Evolution of the average wage.
   • Productivity and employment.
   • Objective of setting the SMI around 60% of the average wage, according to the European Social Charter.
   Their report is not binding, but guides the political decision.
2. Negotiation at the social dialogue table
   With that report on the table, the Government convenes unions and employers. Legally, it is only obliged to “consult”, not to reach an agreement, but politically a tripartite pact is sought. In this phase, the following are discussed:
   • The specific amount of the 2027 SMI.
   • Its implementation schedule.
   • Related aspects (for example, rules on absorption and compensation in collective agreements).
3. Drafting and processing of the Royal Decree
   Once the Government’s position is set, the Ministry of Labor drafts the Royal Decree that sets the SMI. This file usually includes:
   • Regulatory and economic impact assessment.
   • Reports from other ministries and advisory bodies when appropriate.
   This is an internal Executive procedure, not parliamentary.
4. Approval by the Council of Ministers
   The Council of Ministers approves the Royal Decree with the new SMI amount for 2027. It does not require a vote in Congress to come into force, unlike a royal decree-law.
5. Publication in the BOE and effects
   The Royal Decree is published in the Official State Gazette (BOE). Usually:
   • It takes effect from January 1, 2027, even if approved later.
   • It may provide, if applicable, rules for proration and calculation in extra payments, as well as adaptation of in-kind salaries and collective agreements.
   From that moment, the increase is considered definitively approved and mandatory.

Impact of the electoral calendar

The calling of general elections and the dissolution of the Cortes do not legally block the SMI increase, because it is a Government decision adopted by Royal Decree. The main risk is political timing: if the current Executive does not complete the process before the elections, the new Government will decide whether to maintain, delay, or modify the planned increase.

In summary, the 2027 SMI increase is in a preliminary phase of technical preparation and social dialogue, outside the parliamentary circuit. The key pending steps are the expert report, negotiation with unions and employers, approval of the Royal Decree in the Council of Ministers, and its publication in the BOE with effects, presumably, from January 1, 2027.

According to current legislation, the current officeholder is Yolanda Díaz Pérez, Second Vice President of the Government and Minister of Labor and Social Economy. Her powers derive mainly from Law 50/1997, of the Government, from Royal Decree 829/2023, of November 20, which restructures ministerial departments, from Royal Decree 1230/2023, of December 29, which modifies it, and from Royal Decree 502/2024, of May 21, which develops the basic organic structure of the Ministry of Labor and Social Economy (RD 829/2023, RD 1230/2023, RD 502/2024).

Based on these norms, her functions can be grouped into two main blocks: those exercised as Minister of Labor and Social Economy and those corresponding to her status as Second Vice President of the Government.

1. Powers as Minister of Labor and Social Economy

Royal Decree 829/2023, as detailed in the consolidated text, establishes that:

• The Ministry of Labor and Social Economy is the body of the General State Administration responsible for proposing and executing the Government's policy on employment, social economy, and corporate social responsibility.
• This ministry is structured into three main superior bodies: the State Secretariat for Labor, the State Secretariat for Social Economy, and the Undersecretariat of Labor and Social Economy (developed in RD 502/2024).

Royal Decree 502/2024 specifies that, under the superior direction of the minister, the department particularly assumes:

• Labor and labor relations policy: regulation and development of the labor framework, promotion of reforms to the Workers' Statute and social dialogue with business and union organizations.
• Employment policy: design and monitoring of active employment policies, coordination with public employment services, and planning of instruments for labor insertion.
• Self-employment: normative proposals and support programs for self-employed workers, as well as their social protection in coordination with other departments.
• Social economy: promotion and development of cooperatives, labor societies, and other social economy formulas, as well as associated specific programs (e.g., social economy promotion plans).
• Corporate social responsibility: definition and promotion of corporate social responsibility frameworks, standards, and programs that encourage socially responsible business practices.

As head of the ministry, the legislation also attributes general functions typical of any minister, which in her case project over these matters:

• Exercise the top management of the department, setting political priorities and strategic lines in employment, labor, and social economy.
• Propose to the Council of Ministers bills and royal decrees within her material scope, as well as agreements affecting labor relations and the labor market.
• Direct and coordinate the actions of the State Secretariats and the Undersecretariat of Labor and Social Economy, as well as their dependent bodies, within the competencies defined by RD 502/2024.
• Represent the Ministry of Labor and Social Economy internally and internationally, especially before European institutions and organizations such as the International Labour Organization, regarding employment, labor, and social economy.

2. Functions as Second Vice President of the Government

The figure of the Vice Presidencies of the Government is configured in Law 50/1997, of November 27, of the Government, and is organizationally specified in ministerial structure regulations. As with the First Vice Presidency, the regulation establishes that the vice presidency exercises the functions entrusted by the President of the Government, in addition to those that may be attributed in other provisions.

In material terms, this translates into the Second Vice President:

• Acts as second in the political hierarchy of the Executive after the First Vice Presidency, forming part of the core coordination of Government action.
• May assume tasks of political coordination of substantive areas (in her case, especially the labor, social, and economic block linked to employment and labor) when so provided in internal Government decisions or royal decrees on delegated commissions, such as Royal Decree 1/2024, of January 9, on Government Delegated Commissions.
• Participates in the deliberation and preparation of major decisions of the Council of Ministers, with a reinforced role in matters related to her portfolio.
• Exercises the political representation functions of the Government delegated by the President, both internally and externally, especially on labor, employment, and social economy issues.

In sum, the legislation configures the Second Vice President and Minister of Labor and Social Economy as the top official responsible for labor, employment, and social economy policy of the Government, and as one of the main figures of political coordination of the Executive, with the capacity to direct and articulate, by delegation of the President, Government action in these areas and in the delegated commissions assigned to her.

In Spain, the setting and modification of the interprofessional minimum wage (SMI) is heavily regulated. The core is found in Article 27 of the Workers' Statute, developed by annual royal decrees of the Government and framed by the Constitution. From these norms, the material, formal, and competence requirements that must be met can be clearly identified.

1. Basic constitutional and legal framework

Article 35 of the Spanish Constitution recognizes the right of workers to a “sufficient remuneration to satisfy their needs and those of their family.” The preamble of Royal Decree-law 3/2004, of June 25, expressly highlights that this provision serves as the starting point for SMI regulation and that Article 27 of the Workers' Statute (ET) constitutes the basic regulation in the matter.

According to that preamble, Article 27 ET:

• Establishes that it corresponds to the Government to determine the SMI annually.
• Requires that such determination be made after consultation with the most representative trade union and employer organizations.
• Imposes that, to set the SMI, at least these material criteria be taken into account:
  • The consumer price index (CPI).
  • The national average productivity achieved.
  • The increase in labor's share of national income.
  • The general economic situation.
• Provides for the possibility of a semiannual review if price forecasts are not met.

2. Competent body and legal nature of the act

The specific amount of the SMI is not set in the law itself, but by a regulatory provision:

• The competence corresponds to the Government, acting collegially in the Council of Ministers.
• The SMI is set by a royal decree that develops Article 27 ET. Royal Decree-law 3/2004 itself emphasizes that “in its development, the corresponding royal decree is issued annually setting its amount for each fiscal year.”
• In situations of extraordinary and urgent necessity, the Government could use a royal decree-law, according to Article 86 of the Constitution, as an exceptional instrument to quickly adopt an SMI modification. That decree-law must then be debated and ratified or repealed by Congress within a maximum of 30 days.

The annual royal decree setting the SMI has the nature of a government regulation and, as such, is challengeable before the contentious-administrative jurisdiction if considered contrary to the law or the Constitution.

3. Procedure to set and modify the SMI

Based on Article 27 ET and the scheme in Royal Decree-law 3/2004, the procedure can be summarized as follows:

• Initiative and technical proposal: the ministry competent in labor and employment prepares a proposal for the SMI amount, based on the legal criteria (CPI, productivity, labor's share of national income, and economic situation).
• Consultation with social interlocutors: before deciding, the Government must consult the most representative trade union and employer organizations. Legally, this is a mandatory requirement: Article 27 ET imposes this consultation as a prior step to the annual setting of the SMI.
• Deliberation and approval in the Council of Ministers: the royal decree text is submitted to the deliberation of the Council of Ministers, which formally approves it. Royal Decree-law 3/2004 reflects the typical formula: “at the proposal of the Minister of Labor and Social Affairs and after deliberation of the Council of Ministers… I ORDER”.
• Official publication: the royal decree is published in the Official State Gazette (BOE), from which moment the new SMI amount becomes enforceable under the terms established in the text itself (usually from January 1 of the corresponding year, with any particularities foreseen).

4. Modification of the SMI

In practice, the “modification” of the SMI occurs:

• Each year, when a new royal decree is approved that replaces the previous amount, following the same scheme of consultation + material criteria + approval by the Council of Ministers + publication in the BOE.
• Within the same year, if the semiannual review provided in Article 27 ET is used when the actual price evolution deviates from initial forecasts. This review also requires a new government regulatory act (typically another royal decree) updating the amounts.
• In exceptional urgent situations, by means of a royal decree-law, with constitutional guarantees of subsequent parliamentary control.

In summary, the key requirements are: legal basis in Article 27 ET, mandatory consultation with the most representative unions and employers, application of the economic criteria set by law, approval in the Council of Ministers, and formalization by royal decree published in the BOE, both to set and to modify the SMI.