The Spanish government has increased the minimum wage

The Spanish government has approved a 3.1% rise in the minimum wage for 2026. This means an increase of €37 a month, taking the minimum wage to €1,221 gross, paid over 14 instalments a year. The agreement was signed by Spain’s second deputy prime minister and labour minister, Yolanda Díaz, along with the leaders of the trade unions CCOO and UGT. Employers’ organisation,s CEOE–Cepyme did not sign up to the deal.

Prime Minister Pedro Sánchez noted that this is the eighth increase in the minimum wage since the current government came to power. He criticised employers’ associations for staying out of the agreement, arguing that at a time of record stock market figures and company profits, it is “unacceptable to scrutinise the wages of those who earn the least”.

He stressed that raising the minimum wage is “a matter of social justice and economic common sense”, adding that “Spain moves forward when its workers move forward”.

Employers refused to back the deal after the government rejected their proposal to index public contracts to reflect rises in the minimum wage.

The royal decree will be approved by the Council of Ministers by the end of the month, with the pay rise applied retroactively from 1 January 2026.