On 17 February 2026, the Council of Ministers approved the Royal Decree setting the Minimum Wage for 2026 at 1,221 euros per month in 14 payments, a rise of 3.1% over the previous year and 66% since 2018. The Official State Gazette published the regulation on 18 February.
The agreement signed with the majority trade unions COOO and UGT at the Social Dialogue table will benefit some 2.5 million workers. The decision affects both permanent workers and those with fixed-term employment contracts whose service with the same company does not exceed 120 days, as well as domestic workers.
In addition, the agreement provides for the increase to be effective for workers with a specific regulation and avoids compensation and absorption mechanisms for specific allowances.
What is the Minimum Wage?
This is the minimum amount of pay received by workers in relation to the legal working day. It is regulated annually by the Government, after consultation with the most representative trade union organisations and employers' associations. The minimum wage includes only the monetary remuneration. This wage refers to the legal working day in each activity. If a shorter working day is worked, it will be paid on a pro rata basis.
What is the amount of the Minimum Wage for 2026?
- The minimum wage for all activities in agriculture, industry and services, irrespective of the sex and age of the workers, is set at 40.70 euros/day or 1,221 euros/month, depending on whether the wage is set on a daily or monthly basis.
- The minimum wage is calculated solely on the basis of remuneration in cash, and under no circumstances may remuneration in kind lead to a reduction of the full amount in cash.
- This wage refers to the legal working day in each activity, not including in the case of the daily wage the proportional part of Sundays and public holidays. If a shorter working day is worked, it will be paid on a pro rata basis.
What is the SMI for workers with fixed-term contracts whose services to the same company do not exceed 120 days?
These workers shall receive, together with the minimum wage, the proportional part of the remuneration for Sundays and public holidays, as well as the two extraordinary bonuses to which, as a minimum, every worker is entitled, corresponding to the salary of thirty days in each of them, without the amount of the professional salary being less than 57.82 euros per legal working day in the activity.
What is the minimum wage for domestic workers?
The minimum wage for hourly domestic workers who work on an external basis shall be 9.55 euros per hour worked.
Can wage supplements be included in the Minimum Wage?
No. The minimum wage does not include them. To the minimum wage shall be added, serving as a module, if applicable, and in accordance with the provisions of collective agreements and employment contracts, the wage supplements, as well as the amount corresponding to the guaranteed increase on the time wage in the premium or production incentive remuneration.
Is the minimum wage net or gross?
The Minimum Wage refers to the gross wage of workers. The 1,221 euros per month in 14 payments represents the total amount of the payroll.
Does the increase in the minimum wage have retroactive effect?
Yes. The increase approved by the Council of Ministers will apply retroactively to 1 January 2026.
Do workers who receive the minimum wage have to pay taxes to the tax authorities?
People receiving the SMI are exempt from paying Personal Income Tax (IRPF).
What are the objectives of the increase in the minimum wage?
- Effectively address the right to fair and adequate remuneration that provides workers and their families with a decent standard of living.
- To push for the SMI to reach 60% of the average wage, thereby complying with the provisions of the European Committee of Social Rights in application of the European Social Charter.
- Contribute to promoting sustained, sustainable and inclusive growth and recovery of economic activity and to the achievement of the 2030 Agenda
How much has the SMI gone up in recent years?
The Government has approved eight increases in the Minimum Wage since 2018, representing a cumulative increase of 66%. It has risen from 735 euros per month in 2018 to 1,221 euros in 14 payments in 2026.
Non official translation