Editor’s note: This article was first published in June 2011; the minimum wage of 641.40 euros a month and the May 2011 inflation rate of 3.5% are figures from that time. The announced 2012 rise did not happen: the new government froze the minimum wage for 2012 at 641.40 euros.
Labour Minister Valeriano Gómez has announced that Spain’s minimum wage (Salario Mínimo Interprofesional) will rise by between 1.5% and 2.5% in 2012.
The minimum wage currently stands at 641.40 euros, and it is expected to rise by 1–2% in 2011 and by 1.5–2.5% in 2012. The increase will come with a wage review clause at the end of the period and an opt-out clause for companies that can show they would struggle to pay it.
This rise will not stop the loss of purchasing power, since in May this year inflation stood at 3.5%.
In plain terms, this means that even though we’ll be paid more, we’ll keep getting poorer.
The trade unions have voiced their discontent and accused the government of breaking its promise to set the minimum wage at 800 euros, although it seems that won’t be possible for now.
Remember that the minimum wage in Spain is currently half that of France and one of the lowest in the European Union. It will hardly be possible to boost consumer spending this way.
Further reading
- Investing in Spain: a risky country for investors
- Profitable companies will pay for their own layoffs
- How to boost your business’s sales during the crisis
- The advantages of starting a business in times of crisis
- Spain is short of e-commerce
Featured image: Stanislaw1999, CC BY-SA 4.0, via Wikimedia Commons.
