Government proposes 3.1% minimum wage rise for 2026, tax‑free in income tax

This amount represents €37 more per month than the current €1,184 monthly wage and aligns with one of the two options presented by the Expert Committee.

The Secretary of State for Labour, Joaquín Pérez Rey, announced on Wednesday that the government has proposed to social partners a 3.1 % rise in the Inter‑Professional Minimum Wage (SMI) for 2026, bringing it to €1,221 per month (paid in fourteen installments) and keeping it exempt from IRPF taxation. At the same time, the government has pledged to begin studying “seriously” the relaxation of de‑indexation rules in public procurement.

The proposed figure adds €37 per month to the current €1,184 and matches one of the two scenarios outlined by the Expert Committee that advises the government on the SMI. The committee had suggested for this year a 3.1 % increase if the minimum wage remained non‑taxable in IRPF, or a 4.7 % increase if it were to become taxable.

Pérez Rey indicated that an agreement has been reached with the Treasury to keep the SMI non‑taxable in 2026 as well. He said that social partners will now examine the proposal, which was presented at a meeting that began early on Wednesday. So far, the Labour Ministry’s “number two” has not received a definitive yes or no from the partners.

During today’s meeting, the reform of compensation and salary absorption rules was not discussed; that reform will be addressed in a separate decree, Pérez Rey clarified.