Council of Ministers

Government agrees to extend minimum wage set at 950 euros per month

Moncloa Palace, Madrid, Monday 28 December 2020

The Council of Ministers agreed to temporarily extend the validity of the legislation that establishes the amount of the minimum wage (Spanish acronym: SMI) at 950 euros in 14 payments for 2020.

This is a temporary extension until such time as the government and the social stakeholders establish a new SMI for 2021 within the framework of social dialogue. By taking this decision, the government gives legal certainty and continuity to the SMI function as a minimum wage guarantee for workers.

During his press briefing to take stock of his first year of administration, the President of the Government, Pedro Sánchez, highlighted that the SMI has been raised by 29% since 2018 against a backdrop of low inflation. "No country has managed to raise it by so much in just two years". Pedro Sánchez reiterated his commitment to the SMI reaching 60% of the average salary in Spain by the end of this term of office.

Adaptation to the UK's withdrawal from the EU

The government approved regulatory, logistical and informative actions to adapt the Spanish legal system to the situation created by the definitive withdrawal of the UK from the EU.

These measures, in addition to the preparatory work for Brexit, will allow Spain to address the changes that will take place in its relations with the United Kingdom as from 1 January 2021 under better conditions.

The initiatives are geared towards overseeing the interests of individuals and economic operators. They are temporary and will remain in force until the deadline indicated for each case, or before, if instruments are adopted domestically or internationally to permanently regulate relations with the United Kingdom.

Installation of renewable plants

The government has established a new process for the concession of access and connection permits to electricity transmission and distribution networks, a preliminary yet necessary step to install new renewable energy plants.

The new legislation removes inefficiencies and speculation and fosters the orderly rollout of renewable energies. Together with the new renewable energy auctions, this completes the regulatory framework in Spain for the coming decade, helping boost the economic recovery and job creation.

The general criterion for granting access and connection rights will be temporal priority. The text specified that the installed power for photovoltaic plants will be the lower between the peak power and that of the investor. Storage is also regulated and the formalities to support hybridisation will also be simplified.

First report on government accountability

Pool Moncloa/JM CuadradoThe Council of Ministers reviewed the accountability report entitled "Complying", which makes public the commitments taken on by the government in different areas, and their degree of compliance, as well as the forecast for implementation over the coming months.

The President of the Government, Pedro Sánchez, gave a press briefing to offer details of this report and to take stock of the government's administration.