Politics · Spain · 11 hrs ago
Spain says minimum wage will remain exempt from income tax
Spain's government says minimum-wage earners will remain exempt from income tax next year.
The commitment concerns the national minimum wage, known as the SMI, and was announced by government spokesperson Elma Saiz.
The government is preparing a rise, but the new minimum-wage amount is not yet set.
A committee of experts is due to recommend a rise aimed at protecting workers' purchasing power, and the Labour Ministry plans to publish its proposal next week.
The tax relief has caused disagreements within the government, and updating the exemption requires a legal change.
The government says it will adjust the current tax deduction to the final wage level, but the change's timing is not confirmed.
Spain’s government says the minimum wage will remain exempt from personal income tax next year.
Government spokeswoman Elma Saiz said the planned increase to the minimum wage would not be taxed.
The amount of the increase has not yet been decided, and a proposal is expected in the coming weeks.
A separate report says keeping the wage exempt requires a legal change that has no set date.
The minimum wage was €1,221 a month in 2026, according to El Mundo.
- Who
- The Spanish government, announced by spokeswoman Elma Saiz.
- What
- The government says the minimum wage will remain exempt from personal income tax next year.
- When
- The exemption is intended to apply next year; the increase proposal is expected in the coming weeks.
- Where
- Spain.
- Why
- To keep minimum-wage earners from paying personal income tax on that income.
Spanish government
El Mundo report on the legal approval needed
Exemption next year
Spanish government
Saiz said the planned increase would not be taxed and that the government would update the deduction.
El Mundo report on the legal approval needed
El Mundo reported that a legal reform must be approved to maintain the exemption.
Timing
Spanish government
Saiz said the deduction would be updated to the amount ultimately approved by the Cabinet.
El Mundo report on the legal approval needed
Sources at the Finance Ministry told Europa Press there was no concrete date for the reform.
Spain’s minimum wage rose by 66%, reaching €1,221 a month in 2026, according to El Mundo.
El Mundo reported that a legal reform would be needed to update the minimum-wage tax exemption and that no date had been set.
Saiz said the planned minimum-wage increase would remain exempt from personal income tax.
The government is expected to settle the amount of the minimum-wage increase.
- Minimum wage in 2026
- €1,221 per month
- Rise since 2018
- 66% by 2026
- People receiving the minimum wage
- 2.5 million this year, according to the government’s estimate reported by 20minutos
- Minimum-wage proposal
- Expected in the coming weeks
- Election date cited
- 29 November
3 sources
El Gobierno confirma que el salario mínimo seguirá sin pagar IRPF el año que viene
Elma Saiz asegura que el Gobierno aprobará otra deducción para que el salario mínimo no tribute en el IRPF
Los trabajadores que cobran el SMI pagarán IRPF si el Gobierno no aprueba otro ajuste fiscal en la Diputación Permanente o en 2027
What people are saying
We will continue with that commitment to raise the minimum wage and also keep it exempt from taxation
That has to come after the minimum wage is raised