Monday, September 27

The Government proposes to raise the minimum wage this year by a maximum of 19 euros, up to 969 euros

The Government has proposed this Wednesday to the social agents an increase of 15 euros in the minimum interprofessional wage (SMI), until reaching 965 gross euros per month, for the remainder of 2021, as announced by the unions. However, sources from the Ministry of Labor assure that “no proposal has been made” and what has been raised is the range of rise of between 12 and 19 euros raised by the Committee of Experts created for this purpose. With this, the maximum rise would leave the SMI at a maximum of up to 969 euros for this year.

At the moment, there is no agreement with the social agents, the CEOE and Cepyme employers and the CCOO and UGT unions. The Ministry of Labor has decided to call a new meeting for next Monday to give an opportunity to the social agreement. According to the unions, for 2022 and 2023 the Executive has proposed increases of 31 euros, which would leave the SMI at the end of the legislature at 1,027 euros.

After the meeting, the Secretary of State for Employment, Joaquín Pérez Rey, has not specified the figure and has indicated, in statements to the media, that the Government has proposed that the rise is in the aforementioned range, according to the recommendations of the independent expert report published last June. Those 15 euros that, according to the unions, the Executive offers, are in the middle point between both figures.

The Government wants to use as a reference the aforementioned report by independent experts who advised a gradual path to increase the SMI until 2023 “which should start now,” according to Reyes. “The range is wide and should help us to reach an agreement,” Reyes pointed out, reports Europa Press.

However, the final figure will depend on the “geometry” of the agreement, which the Government hopes will have the consensus of all, although it has assured that “there are other possibilities.”

“For the Government of Spain raising the minimum wage in 2021 is essential,” remarked Reyes, who alluded to the good macroeconomic data to undertake said increase and has advanced that the employment figures to be published this Thursday “are very good” .

“Not raising the salary in 2021 is something that nobody could understand and would have to explain the reasons that support that position,” he remarked.

Sources from the Ministry of Labor insist that the Executive has not put “any figures” on the table. “We wanted to listen to the demands of all the social agents to see if there was room to negotiate” and to bring positions closer together. The same sources indicate that the employer’s association, which until this Wednesday had refused to accept an increase in the SMI, is willing to negotiate.

Announcement by Sánchez

The negotiation comes after this Wednesday, the President of the Government, Pedro Sánchez, has started the political course making it clear that the will of the Government is that the recovery reaches all “pockets” and, as a first measure, has confirmed a ” immediate rise “of the SMI, which was frozen in 2021 at the request of the socialist part of the Executive pending the progress of the economy.

The regulatory plan that the Council of Ministers approved this Tuesday reflects precisely that rise in the SMI for 2021 and an update for next year. The socialist part of the Government considers that the circumstances exist to raise the SMI after months frozen at 950 euros per month given the growth experienced by the Spanish economy and that is forecast for 2022.

The rise will come after inflation shot up to 3.3% in August as a result of the rise in electricity, its highest in almost ten years, a matter to which Pedro Sánchez has given special relevance in his speech . This Thursday, the price of electricity in the wholesale market will break its fourth consecutive historical record.

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