On February 12, 2025, the Council of Ministers approved a 4.4% increase in the Minimum Interprofessional Wage (SMI), raising it by 50 euros to reach 1,184 euros gross per month in 14 payments, totaling 16,576 euros annually. This measure will benefit approximately 2.5 million workers, mainly women and young people with part-time jobs and lower salaries.
Key Points of the SMI Increase:
Retroactive Effect: The increase is retroactive from January 1, 2025, meaning that workers will receive the corresponding adjustment for the previous month in their next paycheck.
Income Tax (IRPF) Implications: With the new SMI exceeding 15,876 euros annually, some workers will be required to file income tax returns. Approximately 20% of SMI recipients, around 500,000 individuals who are single and without children, will need to pay about 300 euros annually in IRPF. Those with dependents or specific personal situations may remain exempt.
Comparison with the European Social Charter: Despite the significant increase, the SMI still does not reach 60% of the country’s average salary, as recommended by the European Social Charter.
Conclusion:
The increase in the SMI represents a significant improvement for many workers in Spain. However, it also brings new fiscal responsibilities for some recipients and highlights the need to review other related indicators, such as the IPREM, to ensure comprehensive support for the most vulnerable groups.