Minimum Wage in Spain - Frequently Asked Questions

Is there a separate legislation relating to minimum wages in Spain?

Although Minimum Wage is defined in Worker's Statute (Estatuto de los Trabajadores. Art. 27) the main labour law in Spain - 'Royal Decree' usually issued in December of every year, establishes the amount of Minimum wage for the year to come. The minimum wage is the amount workers are paid for a legal day's work in any activities of agriculture, industry or services, regardless of gender or age of workers, whether permanent, temporary or seasonal, or other domestic workers.

The official minimum wage is set by the Government annually, by Royal Decree, after consultation with the most representative trade unions and employers associations, taking into account the consumer price index, the average national productivity, increasing labour’s share in national income and general economic conditions. The amount is set to wage / salary day / month and in the case of domestic workers is also fixed in wage / hour. Also a semi-annual review for the case that the estimates of the rate quoted prices are not met will be set.

Do one or more minimum wages exist that is/are determined by law?

In 1998 the minimum wage for under 18 was equated with those over that age, setting a single minimum wage. There's only one minimum wage, but the Royal Decree makes a special mention of domestic workers (a fixed wage per hour) and contingent and temporary workers in order to establish that with their minimum wage they will receive together with the daily minimum wage, the proportion of the remuneration of Sundays and holidays, as well as two extraordinary perks.

At what level is minimum wage determined at?

Minimum Wages in Spain is determined at occupation or skill level. Royal Decree makes a special mention of domestic workers (a fixed wage per hour) and contingent and temporary workers

On what basis is minimum wage calculated?

Minimum Wage can be calculated on daily, hourly, monthly and yearly basis. Apart from the regular minimum wage, when employment does not exceed 120 days per year, workers receive, together with the daily minimum wage, the proportion of the remuneration of Sundays and holidays, as well as two extraordinary perks, corresponding 30 days salary for each. In the case of domestic workers minimum wages is fixed on hourly basis.

In case of weekly/monthly minimum wage, are they based on any fixed number of hours?

This amount is for a full time working days - Maximum 40 hours per week. There is no reference to number of hours per day, although 8 hours per day is the most used working time when there isn't a collective agreement that regulates it. Are governmental bodies, employer and/or trade union representatives involved in minimum wages setting? -- Theoretically the Government consults with the social partners - Employer organisation namely CEOE, and Trade union/trade union confederations namely CCOO and UGT to determine the minimum wage.

How are upratings (adjustments) of minimum wage/s decided upon?

Adjustment in minimum wages is decided by the government after consultation with employer and trade unions representatives.

Which are the components of minimum wage in Spain?

The regulations establish only fixed components. Variable are not regulated.

How frequently is the fixed component of minimum wage updated?

Royal Decree in December of every year. In 2013 Royal Decree 1106/2014 26-12-2012 Real Decreto 1106/2014, de 26 de diciembre.

What is/are the yardstick/s on which minimum wage upratings are based?

To establish the minimum wage for each year are considered together consumer price indexation (CPI), the average national productivity, increasing labour’s share in national income and economic situation analyzed generally.

What is National Poverty line?

Click here to know the national poverty line in context with Minimum Wage, living wages and actual wages. Select the currency (Euro or national currency) to know national poverty line.

How is minimum wages compliance regulated?

Minimum wages compliance regulated by Labour Manpower Office (or similar body).

Which legal sanctions can be applied if compliance is lacking?

In case of non compliance administrative fine is imposed.

Are sanctions often being applied?

Sanctions are applied sometime.

Are employer and/or trade union representatives involved in compliance procedures?

Employer and/or trade union representatives are not involved in compliance procedures.

To whom/Where can individuals complain, if they think they are earning less than minimum wage?

Individuals can complain to Labour Inspectorate COORDINATES, if they think they are earning less than minimum wage.

Which month of the year is minimum wage rate revised in Spain?

Minimum wages is revised in the month of December every year.