The Spanish Government has recently approved a change to the Interprofessional Minimum Wage (SMI in Spanish) that comes into effect in the year 2023. The new SMI amounts to €1,080 in 14 payments, which represents an increase of 5.5% compared to the minimum wage of the previous year. In this article, we will go into detail about the changes it entails and how it will affect workers and companies.
Before getting into the subject, it is essential to define what constitutes false self-employed workers.
These are workers who, although they apparently have the status of self-employed, in reality, maintain a subordinate employment relationship with the company that hires them. In other words, they perform their work under the guidelines and supervision of the employer, who has effective control of their activity.
In February 2023, the Government of Spain approved the update of the Interprofessional Minimum Wage (IMW) for that present year. The established amount comes up to €1,080 in 14 payments, which represents an increase of 5.5% compared to the IMW of 2022.
This increase represents an important advance in the fight against job insecurity and poverty in the country, as it is expected to benefit more than two million workers. In addition, the government has stated that this measure is a priority to promote an inclusive and more sustainable economy.
The increase in the Interprofessional Minimum Wage for 2023 will have a direct impact on the lives of millions of workers in Spain. It is estimated that around two million people will benefit from the increase in the IMW, which will translate into an increase in their purchasing power.
This increase in the minimum wage can help reduce poverty and increase job insecurity, as it allows workers to cover their basic needs more easily. However, there are also critical voices that indicate that the increase in the IMW can have negative effects on the economy, such as job destruction or price increases.
The increase in the Interprofessional Minimum Wage will also have a direct impact on companies operating in Spain. In general, it is expected that companies with higher labor costs will be more affected by the update of the IMW, such as small and medium-sized enterprises or sectors with a greater presence of employees with minimum wages.
In conclusion, the update of the Minimum Interprofessional Wage for 2023 represents an important step forward in the fight against labor precariousness and poverty in Spain. Although there are critical voices that point out the possible negative effects that this measure could have on the economy, it is expected that the increase in the minimum wage will benefit millions of workers and contribute to promoting a fairer and more sustainable economy.
At Employing In Spain, we are aware of the importance of the minimum wage for workers and companies in Spain. For this reason, we have professionals at your disposal to help you meet your employment goals and objectives.
If you need advice on labor and employment matters, do not hesitate to contact us and schedule your appointment today. We are at your disposal for your assistance.