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Minimum Wage Rises to 900 Monthly from January 1/2019

Posted in: Information Topic, Latest News, News Articles,
Author: Myra Cecilia Azzopardi
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Extracts from the Royal Decree:

The Royal Decree sets out the inter-professional salary for 2019. Published in the BOE State Bulletin 27/12/2018.

In compliance with the mandate to the Government to set annually the minimum inter-professional salary, contained in the Statute approved by Royal Legislative Decree 2/2015, of October 23, will with the royal decree of December 2018 establish the amounts as of January 1, 2019, both for permanent workers as for temporary workers, as well as for domestic employees.

The new amounts represent an increase of 22.3 percent with respect to those effective between January 1 and December 31, 2018.

The minimum wage for any activity in agriculture, industry and in services, without distinction of sex or age of the workers, is set at 30 euros daily or 900 euros per month, depending on whether the salary is fixed by days or by months.

This salary is understood as referring to the legal working day in each activity, without including in the case of the daily salary the proportional part of Sundays and holidays. If a lower working day is carried out, it will be charged pro rata.

Casual and temporary workers and domestic employees.

Temporary workers whose services to the same company do not exceed one hundred and twenty days shall receive, together with the minimum wage, the proportional part of the remuneration on Sundays and holidays, as well as the two extraordinary bonuses to which, as a minimum, every worker is entitled to, corresponding to the salary of thirty days in each of them, without the amount of the professional salary may be less than 42.62 euros per legal day in the activity.

With regard to the remuneration of the holidays of the said workers shall receive jointly with the minimum inter-professional wage, the proportional part of this corresponding to the minimum legal holidays in the cases in that there was no coincidence between the period of enjoyment of the holidays and the time of validity of the contract. In all other cases, the remuneration of the vacation period will be made in accordance with article 38 of the consolidated text of the Workers’ Statute Law and other applicable regulations.

In accordance with article 8.5 of Royal Decree of 2011 which regulates the special employment relationship of the family home, which is used as a reference for determining the minimum salary of employees of households that work for hours, in external regime, fixed for seasonal and temporary workers and that includes all remuneration concepts, the minimum wage of said household employees will be 7.04 euros per hour actually worked.

Sole transitory provision. Rules affecting the new amounts of the inter-professional minimum salary to the references contained in non-state standards and private relations.

Whenever there is an express legal authorisation, usually in an Autonomous law,  and, given the exceptional nature of the increase established by this royal decree, the new amounts of minimum inter-professional salary that are established will not be applicable in the following cases:

  •  where the SMI is used as an indication or a reference when applying for subsidies, benefits or public services. Either to determine the height of the subsidy or benefit or to determine the maximum income to be able to receive them. In those regulations, the SMI is understood to be the one from 2016 (approx. 668 euros/month), with a small yearly indexation, the same as applied to the IPREM (Indicador Público de Renta de Efectos Múltiples).
  • where there are ´convenios´ in place for a work sector or even a single company, and where they use the SMI as a reference.

Nonetheless, if companies, partners in a convenio or the Autonomous Government of a specific region choose to do so, they can apply the current 900 euro/month SMI in both above mentioned cases, but they will have to include it explicitly in their regulations.

Residency Resources: Pensions have also increased including non contributory pensions which is from where minimum resources figures are taken for residency applications for EU citizens.

Minimum Resources

Please note: The information provided is based upon our understanding of current legislation. It is not legal advice but is provided freely to enable you to be properly informed. We recommend that if you are considering taking action, you should seek professional advice.

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