Spain's minimum wage rise could bring a tax hit

Spain’s minimum wage is €1,221 a month in 2026, and the government plans to raise it before the 29 November election. But without a change to tax law, people on the wage could lose out when they file their annual tax returns. The Finance Ministry has no date for that change, according to Europa Press.

The government can set a new minimum wage after consulting unions and employers. It does not need a vote in Congress, even if those talks end without agreement. Protecting workers from a tax hit is different: the rules for the final tax bill must change in law. Changing monthly deductions from pay alone would not settle it.

Experts are due to recommend a minimum wage for 2027 by 1 November. The Labour Ministry will then open talks with unions and employers. A tax-law change could go before Congress’s Standing Committee or wait for the new Congress elected on 29 November. Until a reform passes, the existing tax rules would remain in place for 2027.

Topics: Jobs & labour · Politics

Source: Europa Press / Mallorca.com