{"id":232203,"date":"2026-06-18T05:46:44","date_gmt":"2026-06-18T05:46:44","guid":{"rendered":"https:\/\/teknomers.com\/en\/spain-has-not-stopped-increasing-the-smi-since-2018-45-of-collective-agreements-remain-unaffected\/"},"modified":"2026-06-18T05:46:46","modified_gmt":"2026-06-18T05:46:46","slug":"spain-has-not-stopped-increasing-the-smi-since-2018-45-of-collective-agreements-remain-unaffected","status":"publish","type":"post","link":"https:\/\/teknomers.com\/en\/spain-has-not-stopped-increasing-the-smi-since-2018-45-of-collective-agreements-remain-unaffected\/","title":{"rendered":"Spain Has Not Stopped Increasing the SMI Since 2018: 45% of Collective Agreements Remain Unaffected"},"content":{"rendered":"\n
\n

Understanding the Impact of Rising SMI on Collective Agreements in Spain<\/h2>\n

Collective agreements play a crucial role in regulating employment conditions across various sectors in Spain. However, as of 2026, nearly half of these agreements face a significant challenge: they are outdated. This situation arises from the rapid increase in the interprofessional minimum wage (SMI) over the past eight years, which has surged from 735 euros per month in 2018 to a current rate of 1,221 euros<\/a>. This represents a cumulative increase of 66%. Unfortunately, many sectoral agreements negotiated over months have become redundant, as they set minimum wages below the legal threshold, as highlighted by The Economist<\/a>.<\/p>\n

Prevalence of Outdated Agreements<\/h3>\n

Data from a UGT analysis<\/a> indicates that 45% of the sectoral agreements registered in the first quarter of 2026 stipulate salaries that are inadequate in light of the newly established SMI. For instance, the gardener agreement approved in January 2026 set salaries at 1,184 euros, which aligns with the 2025 SMI but fails to meet the new standard for 2026.<\/p>\n

Company Agreements: A Slightly Better Outlook<\/h3>\n

While the proportion of outdated agreements is slightly lower in company agreements, the challenge remains substantial. Out of 25 agreements published in 2026, 9 (36%) were found to have salary tables below the legal minimum. These agreements, often finalized after extensive negotiations, necessitate additional supplements to align with the law.<\/p>\n

The Legal Context of SMI<\/h3>\n

Legal stipulations state that no agreement should set wages below the SMI when considering annual calculations<\/a>. In 2025, the Supreme Court clarified that the annual total must include all remuneration elements. Only if the total, combining base salary and bonuses, reaches 17,094 euros per year (the SMI for 2026), would a company be compliant. Otherwise, an additional salary supplement is mandatory.<\/p>\n

Concerns About Wage Compression<\/h3>\n

The dynamics of minimum wage adjustments can lead to wage compression, a phenomenon concerning unions. As the SMI escalates faster than many collective agreements can adapt, lower salary categories may end up earning similarly to those in higher roles. For example, a laborer and a first-class officer performing vastly different responsibilities might draw similar pay, creating discontent and potentially undermining employee morale. This dynamic, termed “overlapping,” has prompted UGT to advocate for a new Agreement for Employment and Collective Bargaining (AENC) that would establish clearer wage scales.<\/p>\n

Beneficiaries of the SMI Increase<\/h3>\n

The increase in the SMI has undeniably enhanced the purchasing power of low-income workers. From 2018 to 2026, minimum wages surged by 66%<\/a>, significantly outpacing cumulative inflation, which stood at 25%. This boost has helped mitigate the erosion of purchasing power among those earning the least.<\/p>\n

Risks and Future Implications<\/h3>\n

However, without corresponding increases in salaries for adjacent ranking positions, there is a palpable risk of employee stagnation. Employees may be less inclined to seek promotions if the reward in terms of salary does not reflect their enhanced responsibilities, potentially stifling career growth outcomes.<\/p>\n

As Spain continues to navigate the complexities of labor laws and collective bargaining, the pressing issue of outdated agreements necessitates immediate attention from both employers and policy-makers to ensure fair compensation across the board.<\/p>\n

Image credits: Ivan Henao<\/a><\/p>\n<\/div>\n


\n
General News – 2<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Understanding the Impact of Rising SMI on Collective Agreements in Spain Collective agreements play a crucial role in regulating employment conditions across various sectors in Spain. However, as of 2026, nearly half of these agreements face a significant challenge: they are outdated. This situation arises from the rapid increase in the interprofessional minimum wage (SMI) […]<\/p>\n","protected":false},"author":1,"featured_media":232204,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[36399],"tags":[6615,8,2654,1085,42937,1694,866,19584],"class_list":["post-232203","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-technology","tag-agreements","tag-collective","tag-increasing","tag-remain","tag-smi","tag-spain","tag-stopped","tag-unaffected"],"_links":{"self":[{"href":"https:\/\/teknomers.com\/en\/wp-json\/wp\/v2\/posts\/232203","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/teknomers.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/teknomers.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/teknomers.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/teknomers.com\/en\/wp-json\/wp\/v2\/comments?post=232203"}],"version-history":[{"count":1,"href":"https:\/\/teknomers.com\/en\/wp-json\/wp\/v2\/posts\/232203\/revisions"}],"predecessor-version":[{"id":232205,"href":"https:\/\/teknomers.com\/en\/wp-json\/wp\/v2\/posts\/232203\/revisions\/232205"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/teknomers.com\/en\/wp-json\/wp\/v2\/media\/232204"}],"wp:attachment":[{"href":"https:\/\/teknomers.com\/en\/wp-json\/wp\/v2\/media?parent=232203"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/teknomers.com\/en\/wp-json\/wp\/v2\/categories?post=232203"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/teknomers.com\/en\/wp-json\/wp\/v2\/tags?post=232203"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}