There are so many business changes with respect to the scope of work, the laws are in constant evaluation and one of the items that need to remain competitive is the Minimum Interprofessional Salary (SMI), a fundamental pillar for the workers, since from this concept establishes the basic income that should be paid a worker. Today we tell you what you need to know about the Minimum Wage in 2024.
What is the SMI in Spain?
The SMI or Minimum Wage, refers to a reference to economic, established by the Spanish government, which establishes the minimum amount that an employer must pay to its employees for work performed.
The SMI throws an amount of money, which is paid in a particular period of time, generally monthly, and this figure is calculated on the basis of criteria such as:
- Economic conditions in Spain.
- Basic needs of the worker.
- Cost of living.
In a nutshell, the SMI is the minimum wage should receive a worker per day, in exchange for their labour activity.
How do you set the Minimum Wage and who determines it?
In Spain, the government is the one who sets the Minimum Wage, from a government process that takes into account the following steps:
The proposal of the government: the government of Spain makes a proposal based on aspects such as the economy, inflation, productivity, and the cost of living.
Consultation with trade union organizations and companies: the initial proposal of the government is put on the table in front of trade unions and business associations, to which the workers ' representatives to negotiate an agreement to increase the Minimum Wage.
Analysis of the proposal: once it reaches an agreement between the government, trade unions and businesses, the process begins which examines the ability of firms and the economic competitiveness, to estimate whether the increase in the SMI is viable.
Approval by Royal Decree: once the analysis of the proposal and the negotiation, approved the new Minimum Wage, making cash on a regular basis, from the date established.
The minimum wage in 2024
According to the Royal Decree, in this 2024, the Minimum Wage will rise to 1.134 euros, according to the publication of the 6th of February.
This rise represents an increase of 5%, which over a period of time in the medium term, has meant an increase of over 50% from 2018.
The increase in terms of hours worked was set at €8.28, that is to say, €37.80 gross the day, however, the rise of the SMI also affects people who do not have an agreement, they receive less income than what is stipulated.
If you have problems in estimating what your salary is appropriate that you have to pay your workers, and you need to efficiently manage your payroll, our professionals in the field work will help you through the consulting services of employment advice.
Contact Warrior Stephen Advisors through the following link.
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