New increase in the SMI: 1,184 euros per month in 14 payments

The Council of Ministers has set the Interprofessional Minimum Wage, SMI, for 2025 at 1,184 euros per month in 14 payments. In this way, the minimum remuneration received by a worker in Spain increases by 50 euros per month and 700 euros per year. The measure, with retroactive effects from January 1 of this year, benefits almost 2.5 million workers.

However, the main novelty on this occasion is that, as announced by the Treasury, SMI recipients will have to pay IRPF for the first time, with exceptions.

We explain all the details of the new SMI.

Who benefits?

This increase directly affects workers who earn less than 16,576 euros gross per year, which is the minimum wage stipulated for 2025. If your monthly salary is higher than the new figure, you will not notice any change in your payroll.

Getting into the matter, the first group to benefit from the approval of this decree is women, as they make up 65.8 percent of recipients, compared to 34.2 percent of men.

The second group most favored by the increase in the SMI is young people, since more than a quarter of recipients are under the age of 25. By productive sectors, the measure especially affects agriculture and services.

In addition, the Royal Decree specifies that household employees who work by the hour must receive a minimum of 9.26 euros for each hour worked. In the case of casual workers, as well as seasonal workers, whose services to the same company do not exceed 120 days, the amount of the salary cannot be less than 56.08 euros per day in any case.

By autonomous community, Andalusia, Madrid, Catalonia and Valencia are the ones that register the largest number of beneficiaries of the SMI increase. In relative terms, the highest percentage of the salaried population that will see their payroll increased corresponds to Extremadura, the Canary Islands, Murcia and Andalusia.

What is meant by SMI?

It is the minimum amount of remuneration that the worker receives in relation to the legal working day. It is regulated by the Government annually, with prior consultation with the most representative trade union organisations and business associations. The minimum wage only includes remuneration in money. This wage is understood to refer to the legal working day for each activity. If a shorter working day is worked, it will be prorated.

Is it a net or gross amount?

The Interprofessional Minimum Wage refers to the gross salary of workers. The 1,184 euros per month in 14 payments represent the total accruals of the payroll. And if the extra payments are prorated, it will be 1,381 euros per month in 12 payments.

What is calculated as SMI?

The minimum interprofessional wage only includes remuneration in money, without the salary in kind being able, under any circumstances, to reduce the full amount.

If you need more information, do not hesitate to contact DATA AND SERVICES.