The Government has finally yielded to the pressure of the Second Vice President and Minister of Labor, Yolanda Díaz, and will resume the increases in the Minimum Interprofessional Salary (SMI) from September.

The Vice President and Head of Economic Affairs, Nadia Calviño, indicated at the press conference after the Council of Ministers that the economic recovery is reaching a rhythm in the labor market that will allow this measure to be taken in the autumn.

Calviño has indicated that the number of people affected by temporary employment regulation files (ERTE) is reducing in a "sustained" manner and that today it includes 450,000 workers.

These people do not count as unemployed.

The unemployment rate forecast by the Government at the end of the year will be around 15%.

Calviño has been very optimistic about the recovery of the labor market this summer since, "in the average of July, 90% of the net employment lost could be recovered as a result of the shock" caused by the restrictions to combat the coronavirus.

"If this very positive trend continues, in autumn the employment levels will be close to those of February 2020", that is, levels prior to the pandemic.

For this reason, the person in charge of Economic Affairs has anticipated that, foreseeably, the conditions will occur to meet the demand of Yolanda Díaz and the unions, which is to increase the SMI.

"In September we will see if it is possible to resume the path of the increase in the SMI. Continue advancing towards 60% of the average salary."

The request of the head of Labor and the unions is supported by a study prepared by a committee of experts and demands a retroactive increase until last January, when Calviño decided to stop the increase in these salaries in a resounding clash with Díaz.

The vice president has confirmed her intention while introducing an important nuance.

The Government has stressed, "it will consider the possibility of raising the SMI in the remainder of the year."

In other words, the increase that the Government would approve would occur as of the approval of the measure and would not recognize the previous 10 months.

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  • Nadia calviño

  • Yolanda Diaz

  • Minister council

  • Coronavirus

  • minimum salary

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