Government and social stakeholders agree to raise inter-professional minimum wage by 4% in 2018 and set a roadmap to reach 850 euros in 2020

The Government of Spain and social stakeholders confirmed the following progress on the steps agreed at their meeting on 19 September:

1. Quality Employment Council. The Government of Spain and social stakeholders presented their proposals for improving regulations on access to the labour market (employment contract types) and reinforcing the principle of causality in part-time recruitment, as well as on the promotion of employment equality and wage transparency, among other things. In turn, the quality employment in the hospitality industry council was also set up. Work will resume in January to make progress on these issues, as well as on incentives and disincentives for part-time recruitment, strengthening action by the Inspectorate for Employment and Social Security on employment fraud, and on work-life balance and streamlining working hours, among other things.
2. Action Plan for Employment Council. As regards active employment policies and unemployment benefits, the proposal put forward in September to extend the professional requalification programme for those people no longer entitled to unemployment protection (PREPARA) was extended to 30 April 2018 on an extraordinary and time-limited basis, and a social agreement was reached in October on an Action Plan for Youth Employment. Work is expected to resume in January on integrating and streamlining the programmes that complement the unemployment protection system prior to 30 April 2018.
3. Vocational Training for Employment Council. Progress was made on implementing the new vocational training for employment model, with the preparation of a training programme on information and communication technologies and the digital economy, with an allocated budget of 60 million euros, to be approved at the Board of Trustees Meeting of the State Foundation for Training in Employment on Friday 22 December. In turn, a sectoral map was approved enabling the creation of new Sectoral Joint Management/Union Structures made up by representatives from companies and workers' unions, which will be able to perform the task of training requirement research. Finally, approval of the duties of the sectoral joint management/union structures is expected when training needs are defined, also on Friday. Work will continue in January on the ordinary scheduling of a training offer for those in employment, among other things.

Finally, discussions took place on the work committed to on wage issues at the meeting in September in order to tackle, together with the social stakeholders, the analysis of factors set by the Workers' Statute regarding definition of the inter-professional minimum wage for 2018.

As a result of this analysis, and in order to help fully pass on the positive effects from the recovery of economic activity to the general public and to continue fostering a balanced improvement in competitiveness from the Spanish economy and the job creation process, the Government of Spain and social stakeholders reached an agreement to set an inter-professional minimum wage increase of 4% in 2018 (resulting in 736 euros/month in 14 payments) and to negotiate a roadmap for an annual increase that would raise this figure to 850 euros/month in 14 payments in 2020.

This will all depend on the economy posting a real GDP increase each year of over 2.5% and an increase in average affiliation to the Social Security system of over 450,000 people.

Non official translation