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EMPLOYMENT

EXPLAINED: How Spain plans to raise its minimum wage by as much as €250

The Spanish government is considering raising the minimum wage in 2021 by an amount which is yet to be confirmed, but which is expected to be between €50 and €250 more per month than the current base salary. Here’s what you need to know.

Published: 3 June 2021 12:50 CEST
EXPLAINED: How Spain plans to raise its minimum wage by as much as €250
A delivery service worker in Burgos, Spain. Photo: Cesar Manso/AFP

What’s new?

Spain’s Labour Ministry has announced its intention to raise the Minimum Interprofessional Salary (SMI) in 2021 and has promised that its committee of experts will this month announce how much the minimum wage should rise over the next three years and at what pace.

Despite the ministry already having made the announcement, there are still many unresolved doubts among the group of experts as to exactly how and when this should happen. 

Spain’s current minimum wage is set at €1,108.3 gross per month. In reality, this equates to €950 a month, payable in 14 instalments to allow for the double monthly salary in July and December. 

Joaquín Pérez Rey, secretary of the State of Employment and Social Economy explained during a recent press conference: “The Spanish government has not abandoned the idea (of raising the SMI) and is waiting for the conclusions of the group of experts to be definitively produced… We trust that throughout the month of June, the commission will be able to give their opinion on what salary to set and the growth rate”.

How is the minimum wage calculated and how much would the new figure be?

According to a report by Vozpópuli, sources have told the news site that the committee of experts have found their task very difficult. Even a few weeks ago they had not yet been able to define what Spain’s average salary is and, therefore, what would be 60 percent of that average salary, to know how far the SMI should go up.

The process is complex, since neither the European Union nor The Organisation for Economic Co-operation and Development (OECD) has given guidelines on how to calculate what the mean or median wage for a country is.

The objective is that the minimum wage should reach 60 percent of the average wage in order to comply with the European Social Charter, but in order to achieve that objective it must first be defined.

Based on this percentage the amount could range between €1,000 and €1,200, but the figure hasn’t yet been officially confirmed.

However, most Spanish news sources have said that the initial minimum wage rise Labour Minister Yolanda Díaz is pushing for in 2021 would be of €50, up to €1,000. These plans have been in the pipeline for Spain’s left-wing government since 2019, the intention being to continue increasing el salario mínimo up to €1,200 by 2023. 

Opposition to raising the minimum wage

At the end of 2020, the Minister of Economy Nadia Calviño aligned herself with Spain’s top business people and managed to freeze an increase to minimum wage, until the economy could recuperate.

In fact, the Spanish Government did not include its intention to raise the minimum wage in its Recovery Plan sent to Brussels, even though Minister of Labour and Social Economy Yolanda Díaz recently insisted that these plans remain in place.

Given the refusal by businessmen to raise SMI, it seems difficult for the Government to approve this measure with everyone in agreement.

The Economic and Social Council (CES), Moncloa’s advisory body on economic and labor matters, has indicated in its Annual Report, published on Wednesday, June 2nd, that there is empirical evidence that increases in the SMI that are not consensual can generate a negative impact on a macroeconomic level. The same will happen if the minimum wage rises above 60 percent of the average salary of an economy.

“Historically there has been a negative impact on the economy when it has been adjusted abruptly and without an agreement,” warns Raymond Torres, director of Situation and International Analysis at Funcas and an expert appointed by the CES.

The last time Spain increased the minimum wage was in January 2020 when Spain’s new Socialist government brokered a deal lifting the minimum wage by 5.5 percent from €59.80 to €1,108 ($1,230) gross a month.

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PADRON

When and how you need to renew your padrón certificate in Spain

The padrón document you get when registering at your local town hall in Spain must be renewed periodically. Find out when and the steps on how to do it.

Published: 22 April 2024 13:09 CEST
When and how you need to renew your padrón certificate in Spain

The padrón certificate is used to show proof of where you live. Your town hall – or ayuntamiento – uses it to find how many people are living in the area and what their ages are.

The number of people living in each area will depend on how much money they will receive from the government. They use this money for local services such as schools, health centres, parks and police officers.

If you are a non-EU citizen with temporary residence (less than 5 years) in Spain, then you will need to renew your padrón certificate every two years.

You will also need to renew your padrón each time you move house, as it should have your current address. 

For some bureaucratic processes in Spain, you will also need to be able to show you have a padrón certificate that’s no older than three months. 

Depending on where you live, there are different ways you can renew it. This could be in person, online or by post.

READ ALSO – Padrón: 16 things you should know about Spain’s town hall registration

Generally, in order to renew your certificate, you will need:

  • A recent gas, water or electricity bill in your name
  • Your rental contract and receipt of your last rental payment
  • If you own your own property, you will need to show evidence that you own it, such as the property deeds

You will also need to show:

  • A valid residence card such as TIE
  • A valid passport
  • In addition, it is also advisable to bring your previous padrón certificate

For children you will also need the following:

  • Records of your digitised family book (libro de família)
  • A valid passport or residence permit of the minor
  • A passport of one of the parents which also contains the identification data of the minor
  • Birth certificate of your child

If you do not live in the same household as your child, you will also need:

  • A delegation for registration form, signed by the parent who lives with the minor.
  • Photocopy of the valid identification document of the parent who lives with the child.
  • In the case of minors under 14 years of age, it will not be mandatory for them to have an NIE, passport or identification document from their country of origin.

Remember that all your documents should be officially translated into Spanish or another local language such as Catalan, if they aren’t already.

READ ALSO: Can I get my padrón online in Spain?

In person

If you are applying in person, you will need to make an appointment at your local Ayuntamiento or town hall.

When the date for your appointment arrives you will need to complete the renewal form, which will most like look something like this, but may change depending on where you live. 

You will also need to bring originals and photocopies of all the documents above.

Online

If you have a digital certificate or Cl@ve PIN you are able to renew your padrón online. You will need to do this via your local government website.

First, you’ll need to identify yourself digitally with your digital certificate or Cl@ve PIN.

Next you will have to complete the renewal form and then attach digital copies of all the above documentation that’s required.

Then you’ll need to submit and sign it digitally.

By post

Although this is not the most common way to renew your certificate, some town halls may let you apply by post and will have details of the relevant address to send your documents and forms to online. 

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