Spanish government, employers and trade unions signed an agreement to increase the minimum wage by 4% in 2018. The idea is the minimum wage to reach 992 EUR by 2020. The Workers Commission Secretary-General Unai Sordo recalled that Spain suffered from a wage devaluation process during the global economic crisis.
The agreement provides for an increase in the minimum wage from 825 EUR to 858 EUR in 2018 and gradual annual increases to 992 EUR in 2020. These annual increases will be made until economic growth reaches 2.5% and job creation – 450,000 per year, specified the Prime Minister Mariano Rajoy.
According to government forecasts, the economy growth this year will be 3.1% and new jobs will be 600,000.
In 2017, the minimum wage in Spain rose most to 30 years after the government agreed to an increase of 8%.
After a peak of 27% in early 2013, the unemployment fell sharply to 16.4% in the third quarter of 2017, but remained second highest after Greece among euro area countries.