The Salario Mínimo Interprofesional (SMI) is Spain's statutory national minimum wage, set annually by the government after consultation with trade unions and employer associations. It applies to all workers in Spain regardless of sector, age, or contract type (with narrow exceptions), and serves as the floor for both pay and Social Security contribution bases.
In practice
The Salario Mínimo Interprofesional (SMI) is Spain’s statutory national minimum wage — the legally-mandated floor below which no employer may pay any worker in Spain, regardless of sector, age, or contract type, revised annually by Royal Decree after consultation with trade unions and employer associations.
Quick answer: Spain minimum wage 2026
Spain’s minimum wage (SMI) for 2026 is €1,221 per month in 14 payments (€17,094 per year), set by Royal Decree 126/2026 with retroactive effect from 1 January 2026. This is a 3.1% increase from the 2025 figure of €1,184/month. The daily rate is €40.70. The full annual SMI amount is exempt from IRPF income tax. Workers earning exactly the SMI from a single employer have zero withholding and no filing obligation.
| Year | Monthly SMI (14 payments) | Annual | vs prior year |
|---|---|---|---|
| 2018 | €735.90 | €10,302 | — |
| 2019 | €900.00 | €12,600 | +22.3% |
| 2020 | €950.00 | €13,300 | +5.6% |
| 2021 | €965.00 | €13,510 | +1.6% |
| 2022 | €1,000.00 | €14,000 | +3.6% |
| 2023 | €1,080.00 | €15,120 | +8.0% |
| 2024 | €1,134.00 | €15,876 | +5.0% |
| 2025 | €1,184.00 | €16,576 | +4.4% |
| 2026 | €1,221.00 | €17,094 | +3.1% |
The SMI has increased 66% since 2018, driven by the government’s commitment to align it with 60% of the average wage as recommended by the European Social Charter. Employers with workers at or near minimum wage must pay January–February 2026 arrears in the first payroll run after the decree’s publication.
Spain minimum wage 2026 (SMI) is €1,221 per month in 14 payments, set by Royal Decree 126/2026 with retroactive effect from 1 January 2026. This represents a 3.1% rise from 2025 and a 66% increase from the 2018 figure of €735.90.
What Is the SMI?
The Salario Mínimo Interprofesional (SMI) is Spain’s national minimum wage — the legally mandated floor below which no employer may pay any worker. It is established annually through Royal Decree, following mandatory consultation with the most representative trade unions (CCOO and UGT) and employer confederations (CEOE and CEPYME).
The SMI applies to all workers in Spain, whether employed on permanent or temporary contracts, full-time or part-time, in any sector, and regardless of their professional category — with the caveat that specific sectors may have higher minimum wages established by their convenio colectivo, which then prevails.
SMI Rates
Spain’s SMI has increased substantially since 2018, when the government committed to raising it to 60% of the average wage (as recommended by the European Social Charter). Historical evolution:
| Year | Monthly SMI (14 payments) | Annual equivalent |
|---|---|---|
| 2018 | EUR 735.90 | EUR 10,302.60 |
| 2019 | EUR 900.00 | EUR 12,600.00 |
| 2020 | EUR 950.00 | EUR 13,300.00 |
| 2021 | EUR 965.00 | EUR 13,510.00 |
| 2022 | EUR 1,000.00 | EUR 14,000.00 |
| 2023 | EUR 1,080.00 | EUR 15,120.00 |
| 2024 | EUR 1,134.00 | EUR 15,876.00 |
| 2025 | EUR 1,184.00 (pending final Royal Decree) | EUR 16,576.00 |
The SMI is expressed in 14 payments per year (12 monthly + 2 extraordinary payments), which is the legally required minimum structure under the Estatuto de los Trabajadores. Employers who prorate extraordinary payments into 12 monthly payments must ensure the annual total still meets or exceeds the SMI.
How the SMI Works in Practice
Daily and Hourly Equivalents
The SMI is also expressed as:
- Daily: approximately EUR 37.80/day (2024)
- Hourly: calculated proportionally for part-time and domestic workers
SMI and Collective Agreements
The SMI establishes an absolute floor. If the applicable convenio colectivo sets higher minimum wages for any professional category, those higher figures apply. Since the 2021 labour reform, collective agreements cannot set wages below the SMI — even if an older agreement predating SMI increases specifies lower amounts, the SMI automatically supersedes them.
This creates a compliance challenge when SMI increases outpace collective agreement renegotiation cycles: employer associations and unions may be mid-negotiation when a new SMI decree takes effect. In these cases, the SMI applies immediately.
Part-Time Workers
For part-time workers, the SMI is applied proportionally based on the number of hours worked. A worker on 50% of full-time hours is entitled to a minimum of 50% of the SMI.
Domestic Workers
Domestic employees (empleados del hogar) are subject to the same SMI. Their Social Security regime was reformed in 2022 to bring them into the general scheme (RGSS), eliminating the historic exemption from unemployment benefit contributions. Since 2023, domestic workers also access unemployment benefit.
Live-in Domestic Workers
Workers who live with their employer may have up to 30% of their salary paid in kind (accommodation and board), but the remaining 70% must be paid in cash and must be at least 70% of the SMI.
SMI and Social Security Contribution Bases
The SMI also functions as the minimum Social Security contribution base for most workers. A worker’s contribution base cannot be less than the SMI amount for their working time, even if the parties agree to a lower salary (which is illegal). This means:
- Social Security contributions cannot be reduced by paying below the SMI
- Any salary supplement paid separately (e.g., expense reimbursements, exempt allowances) that is genuinely non-salary in nature does not count toward the SMI comparison — but the pure salary component must meet the SMI floor
Exempt Items Not Counted Toward the SMI
Certain payments are not included in the SMI comparison:
- Travel and transport allowances
- Overnight subsistence and meal allowances (within exempt limits)
- Employer contributions to pension plans
- Other payments made to compensate actual expenses
The comparison is made on the basis of the base salary and general salary supplements, not the gross total on the payslip.
Monitoring and Enforcement
The Inspección de Trabajo y Seguridad Social (ITSS) actively monitors SMI compliance, particularly in sectors with historically low wages (agriculture, domestic work, cleaning services, hospitality). Penalties for paying below the SMI:
- Classification as a serious labour infraction
- Fines ranging from EUR 751 to EUR 7,500 per worker (higher for systemic violations)
- Back-payment of the difference, with 4-year statute of limitations
Workers may also claim the difference before the Social Court (Juzgado de lo Social).
Impact on Employers
The series of SMI increases since 2018 (a 61% increase from EUR 735 to EUR 1,184 between 2018 and 2025) has had significant direct and indirect effects on employers:
- Direct cost increase for workers at or near the minimum wage (approximately 1.5–2 million workers).
- Knock-on effect on wage structures: workers earning slightly above the old SMI may demand proportional increases to maintain differentials, particularly where collective agreements specify inter-category ratios.
- Social Security cost increase: Higher SMI = higher Social Security contribution bases for the affected workforce.
- Fixed-cost base: The SMI applies even in low-revenue months for permanent contracts; variable cost planning must account for this floor.
Frequently Asked Questions
Can an employer pay less than the SMI if the worker agrees? No. The SMI is a mandatory legal minimum that cannot be waived by agreement between the parties. Any contractual clause agreeing to a lower wage is null and void; the SMI applies automatically.
Does the SMI apply to young workers and apprentices? The SMI applies to all workers. Training contracts (formación en alternancia) have reduced minimum salaries (60%/75% of the category minimum), but these must still meet a floor that has been linked to the SMI by law since 2022 — specifically, the salary in a training contract cannot be below the proportional SMI for the hours worked.
If our collective agreement hasn’t been updated after a SMI increase, what applies? The SMI applies immediately upon entry into force of the Royal Decree setting the new rate. A collective agreement that specifies a lower rate is superseded by the SMI from that date, without waiting for renegotiation.
Is the SMI the same across all of Spain? Yes, the SMI is a national figure set by the central government. There are no regional variations, unlike in some federal countries. However, the cost of living differs significantly between Madrid/Barcelona and rural areas, and collective agreements in different regions may set substantially higher wages.
What is the relationship between the SMI and the IPREM? The IPREM (Indicador Público de Renta de Efectos Múltiples) is a separate reference figure used for public benefits, grants, and subsidy eligibility thresholds. Since 2004, the IPREM and SMI have been separate indicators. The SMI (EUR 1,134/month in 2024) is higher than the IPREM (EUR 600/month in 2024).
Key takeaways
- 2026 figure: €1,221/month in 14 payments (€17,094/year), retroactive from 1 January 2026 under Royal Decree 126/2026.
- Absolute floor: No collective agreement, individual contract, or employer decision can pay below the SMI — any clause doing so is automatically null and void.
- IRPF exemption: Workers earning only the SMI (€17,094/year gross from one employer) pay zero income tax and have no filing obligation.
- Social Security link: The minimum Social Security contribution base equals the SMI — the 3.1% increase therefore raises employer costs by approximately €11/month per affected worker in contributions alone.
- 66% rise since 2018: The SMI has nearly doubled in eight years; employers in hospitality, agriculture, domestic services and retail face compounding annual compliance reviews.