On December 20, 2023, at the proposal of the Minister of Presidency, Economy, Labor, and Housing, Conxita Marsol, the government approved Decree 577/2023, dated December 20, 2023, establishing the minimum wage and interprofessional rates for the year 2024. This is why, within the GRUP, we have considered it relevant to refer to it due to its potential importance for people who may be positively affected.
Firstly, it is necessary to define the concept of the “interprofessional minimum wage,” and in this regard, Article 73 of Law 31/2018, of December 6, on labor relations, establishes the interprofessional minimum wage as follows:
Article 73. Interprofessional Minimum Wage
1. The interprofessional minimum wage is the remuneration that the company must compulsorily pay to the worker in all cases, even in contracts where a unit wage or mixed wage has been agreed upon.
2. The government periodically establishes, at least once a year, the interprofessional minimum wage.
3. The amount corresponding to the interprofessional minimum wage cannot be seized, except in the case of a debt resulting from the non-payment of alimony.
With the single article of Decree 577/2023, dated December 20, 2023, the government sets the interprofessional minimum wage, starting from January 1, 2024, at €7.94 per day, which is €1,376.27 per month. This represents a 7% increase compared to the interprofessional minimum wage in 2023, with a weekly working hour of 40, so any employee over the age of 15 will be governed by the following, at a minimum:
Concept: 15 years or more
- Hourly wage: €7.94
- Daily wage: €63.52
- Monthly wage: €1,376.27
- Hours per day: 8
- Hours per week: 40
- Vacation days: 30
It is also established, based on what Article 21 of Law 31/2018, dated December 6, on labor relations, dictates that “[…] minors under the age of fifteen cannot engage in any work activity during the school period. However, they can work during school holidays and for a maximum of two months per calendar year, provided they enjoy at least one month of school holidays in the summer and half of the school holidays during the rest of the year.”
Regarding the increase in the Consumer Price Index (CPI) on wages approved by the government, it has been noted that there is a lack of agreement between employers and unions. Therefore, the Council of Ministers had to approve a bill allowing for the increase of CPI on wages between the minimum and the average, i.e., on wages ranging from €1,236 to €2,400.
However, the thirteenth salary is excluded, which was one of the essential requirements for unions to reach an agreement. Moreover, no increase is contemplated for salaries exceeding the average salary of €2,400.
In order to find a balance between the Confederation of Employers (CEA) and unions, it has been confirmed that new meetings will be held in January to reach a consensus between the parties.
This bill will have retroactive effects from January 1, 2024, as it is contemplated that the agreement can be reached once the year has started, and not on January 1 itself.
It should be noted that all these proposed increases, both the interprofessional minimum wage and salaries ranging from €1,236 to €2,400 resulting from the CPI increase in wages, are minimum proposals that do not prevent employers from implementing higher increases.