Increase in the Minimum Wage in Spain: A Key Measure to Combat the Gender Pay Gap

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Spain recognizes the importance of raising the minimum interprofessional wage (SMI) as a means to fight inequality and promote gender equality, as it addresses the root causes of economic insecurity and supports inclusive growth.

For this reason, on February 11, the Council of Ministers, at the proposal of the Ministry of Labour and Social Economy, approved a new increase in the minimum wage for 2025 (Royal Decree 87/2025 of February 11). This decision resulted from a prior agreement with the major trade unions: the Workers' Commissions (CCOO) and the General Workers' Union (UGT)—reached through a dedicated Social Dialogue Table. As stated by the Vice President and Minister of Labour and Social Economy of Spain, Yolanda Díaz: "The minimum wage is not just a number; it is a flagship public policy to reduce inequality. It improves people’s lives and changes lives."

In Spain, the minimum interprofessional wage (SMI) has been set at €16,576 gross annually for 2025, which amounts to €1,184 over 14 monthly payments. This represents a 4.4% increase compared to 2024 - equivalent to €700 more per year or €50 more per month. From 2018 to 2025, including the current increase, the SMI has risen by 61%, while inflation has grown by 23%. As a result, the minimum wage in Spain has gained 38% in purchasing power.

This measure has had an extraordinary impact on reducing the gender pay gap, as women represent 57% of the workers earning the minimum wage. The successive increases in the SMI implemented by the current government, together with other key policies, such as the 2021 labour reform, which significantly reduced temporary contracts, and the 2024 regulation of domestic work, have helped reduce the gender pay gap from 21.4% in 2018 to 17.1% in 2024.