Tuesday, July 5

The committee of experts on the minimum wage proposes that it be raised to 1,049 euros per month in 2023

Achieve a minimum interprofessional salary (SMI) in Spain of between 1,011 and 1,049 euros per month to comply with the European recommendation. It is the conclusion of the committee of experts created by the Ministry of Labor to define the goal in Spain of 60% of the average salary to which the Government has committed to bring the SMI at the end of the legislature, in the year 2023 , in order to adapt to what Europe proposes. The advisory commission also collects its proposals for the upward path for the next three years, from the current 950 euros per month, which was the second of its assignments. It proposes different increases in this period, with a greater increase in 2021 or at the end of the period, which together distribute the increase of between 6.4% and 10.4% to achieve this goal. However, they recall that the Government is the one who must decide and point out that there is an “alternative” to concentrate the increase more in 2022 and 2023, although they do not specify it.

When the ‘second assault’ has been unleashed in the coalition Executive in the battle over whether or not to raise the SMI this year, the advisory commission created by the Ministry of Labor has concluded its task of defining what is the goal to which it must approach the SMI to reach the goal of 60% of the average salary and, secondly, what recommendations do you propose to get closer to that figure.

Increases in 2021, even in the prudence scenario

Experts lean in their two scenarios quantified in the study by the rise in 2021, whether of greater or lesser depth. Even so, they remember that it is the Executive that must decide and “another alternative discussed within the commission is that it should be agreed, given the economic and social crisis caused by the pandemic and the uncertainty that it has brought with it, to further concentrate the increases in the SMI in 2022 and 2023 “.

The economist Inmaculada Cebrián López, rapporteur for the commission of experts, has been in charge of explaining the proposed rise path. In their most “prudent” approach given the current pandemic situation, specialists suggest increases in the SMI in the three years, 2021, 2022 and 2023, but they choose to delay “the main part of the increase” for the last two years given the current “uncertainty”.

The debate is open in the Executive, which froze the SMI at the beginning of 2021 due to the COVID crisis, as defended by the economic vice president Nadia Calviño and against the criteria of the Minister of Labor, Yolanda Díaz. The government said that in the middle of the year they would re-analyze the situation. Come June, the positions between Calviño and Díaz remain the same. The President of the Government, who will tip the balance again in one direction or another, this week has cooled the possibility of a rise in 2021 the same arguments used by the economic vice president.

Minimum salary of up to 1,049 euros per month

In the first place, the commission’s report places what is 60% of the average salary. An objective that may seem simple, but that is not so simple for several reasons. Among them, the great disparity of statistics that measure wages in Spain and the alteration that the coronavirus crisis implies in 2020. After an analysis of the different statistical sources, their pros and cons, the report opts for the Annual Structure Survey Salary (EES), which has the latest official data from 2018.

With this starting point, the specialists make a projection to update the average salary in 2020 based on three scenarios: depending on whether it is considered that in 2020 average salaries do not vary, they increase like the salary of public employees and pensions at the beginning of the following year or that increase according to the information collected by the statistics of collective agreements.

From the current SMI of 950 euros per month in 14 payments, the goal of 60% of the average salary in Spain is thus 1,011 gross euros per month in the scenario in which wages in Spain do not rise in 2020 and 1,049 gross euros per month in the scenario with the highest salary increase. Therefore, in the next three years an increase in the SMI from 61 to 99 euros per month in absolute terms would have to be reflected.