Ministry of Economy Supports Proposal to Raise Minimum Wage to EUR1,184 per Month
The Ministry of Economy has expressed its backing for the proposal from the Ministry of Labor to increase the minimum wage by EUR50 per month, bringing it to a total of EUR1,184 gross per month. This alignment between the two ministries marks a notable shift, especially considering past disagreements on similar issues, particularly during the tenure of the previous Economy Minister, Nadia Calviño.
Economy Minister Carlos Cuerpo stated his satisfaction with the Labor Ministry's initiative, which aims for a 4.4% increase in the minimum wage for 2025. This proposal is based on recommendations from a report by experts indicating that the minimum wage should rise in line with economic growth, suggesting an increase of between 3.3% and 4.4% to maintain its purchasing power relative to average wages.
During a media interaction in Valencia, Cuerpo emphasized that the proposed increase fits within the recommended range, thereby justifying his support for it. The Labor Ministry's suggestion to elevate the salary is part of an ongoing negotiation process with social partners, where labor unions have advocated for a more substantial increase of 5% to 6%, targeting around EUR1,200 monthly. However, business representatives have yet to present a counter-offer.
The two parties are scheduled to reconvene on January 22 to further discussions, with the Labor Ministry hopeful that the business sector will propose a compromise that could lead to a tripartite agreement.
In addition to the wage negotiations, Minister Cuerpo also addressed discussions surrounding the potential reduction of the workweek. He noted that there has been progress in discussions with the Labor Ministry, and he is optimistic about reaching a consensus during the upcoming meeting of the Economic Affairs Delegated Commission on January 27.
Cuerpo indicated that he anticipates a productive dialogue that could facilitate a swift transition to legislative processes following an agreement. He underscored the importance of implementing these measures promptly to ensure they take effect in 2025, aligning with the government's commitments.
Moreover, Cuerpo advocated for a gradual implementation of the workweek reduction, particularly for small and medium-sized enterprises (SMEs) that might face challenges in adapting to such changes immediately. This approach aims to provide flexibility in the application of the new regulations, which would not be enforced uniformly across all businesses as initially proposed.
In summary, both the Labor and Economy Ministries appear to be moving towards a collaborative framework that prioritizes the well-being of workers while considering the operational realities of businesses. The upcoming negotiations are crucial in determining the future of labor policies in the country.
