Interprofessional Minimum Wage Rise in 2020

Royal Decree 231/2020 of 4 February establishes a 5% increase in the Interprofessional Minimum Wage (SMI) by 2020, compared to the amounts established in 2019, and retroactively since 1 January 2020.

Determination of the Interprofessional Minimum Wage by 2020

As we said, retroactively applicable since 1 January 2020,the new amounts in force for the Minimum Interprofessional Wage (SMI) in 2020 are as follows:

Daily Interprofessional Minimum Wage: €31.66
Monthly Interprofessional Minimum Wage: 950 euros (in 14 pays)
Annual Interprofessional Minimum Wage for compensation and absorption purposes: EUR 13300
Minimum Interprofessional Wage of the Legal Day in The Activity of Casual and Temporary Workers: 44.99
Minimum Interprofessional Hourly Wage, household employees: 7.43

These new amountsdo not apply in the following cases:

>> to the rules in force as of January 1, 2020 Autonomous Communities,of the cities of Ceuta and Melilla and the local entities using the Interprofessional Minimum Wage (SMI) as an indicator or reference to the level of income to determine the amount of certain benefits or to access certain public services, unless expressly provided otherwise;

>> and any private contract and agreement in force as of January 1, 2020 using the Interprofessional Minimum Wage (SMI) as a reference to any effect, unless the parties agree to the application of the new amounts.

Amount of the Interprofessional Minimum Wage

The minimum wage is fixed for any activity, regardless of sex, or age of workers; fixed at 31.66 euros/day or 950 euros/month.

This new interprofessional minimum wage counts only the remuneration in money, without the wage in kind being able to give a reduction of the full amount in money.

In addition, this salary is understood to refer to the legal working day of each activity, not included in the daily salary, the proportional part of Sundays and public holidays. If a lower day is performed, a pro rata would be perceived.

Salary supplements

To the new amount of Interprofessional Minimum Wage, they shall be added, where appropriate, and in accordance with collective agreements and employment contracts; the salary supplements referred to in Article 26.3 of the Workers’ Statute Act 2/2015, in addition to the amount corresponding to the guaranteed increase in salary in premium remuneration or with incentives in production.

Compensation and absorption

For the purpose of applying the last paragraph of Article 27.1 of the Law on the Status of Workers, as regards compensation and absorption in annual calculation of professional wages in the face of the increase in the interprofessional minimum wage, the following shall be done:

1. The revision of the interprofessional minimum wage set out in this Royal Decree shall not affect the structure or amount of professional wages which workers come from receiving where those wages, as a whole and in annual calculation, exceed that minimum wage.

For this purpose, the minimum annual computation wage, without in any case being considered a lower annual amount shall be EUR 13 300.

2. These perceptions are compensable with the income received by workers in annual and full-time counting in accordance with legal or conventional rules, arbitration awards and individual employment contracts in force on the date of promulgation of this royal decree.

3. The legal or conventional rules and arbitral awards that are in force on the date of promulgation of this royal decree shall survive on their own terms, without further modification than that necessary to ensure the collection of the amounts in annual calculation and, consequently, the professional wages less than the total annual wages must be increased in the amount necessary to be equal to it.

Casual workers, temporary workers and household employees

1. The casual and temporary workers whose services to the same company do not exceed 120 days shall, together with the minimum wage referred to in Article 1, receive the proportional share of Sunday and public holiday remuneration, as well as two extraordinary perks to which at least every worker, corresponding to the salary of 30 days in each of them, is entitled, without the amount of the professional salary being less than 44.99 euros per legal day in the activity.

As regards the remuneration of workers’ leave referred to in this Article, those workers shall receive, together with the interprofessional minimum wage laid down in Article 1, the proportional part of that wage corresponding to the minimum statutory leave in cases where there is no coincidence between the period of enjoyment of the leave and the time of validity of the contract. In other cases, the remuneration of the holiday period shall be made in accordance with Article 38 of the consolidated text of the Law on the Status of Workers and other implementing rules.

2.In accordance with Article 8.5 of Royal Decree 1620/2011 of 14 November regulating the employment relationship of the family home service, which refers to the determination of the minimum wage of domestic employees working by hours, externally, that fixed for casual and temporary workers and which includes all remuneration concepts. The minimum wage for such household employees shall be EUR 7.43 per hour actually worked.