• Warning The OECD warns of the damage that the Minimum Wage has done to employment and calls for productivity to mark any increase

The CEOE has gone ahead this Wednesday by proposing, after the celebration of its Board of Directors, that the Minimum Interprofessional Wage (SMI) increase in 2024 by 32 euros, from 1,080 euros in fourteen payments in which it currently stands at 1,112.40 euros, which represents an annual increase from 15,120 euros to 15,573.6 euros (453.6 euros more per year).

The statement was sent after its president, Antonio Garamendi, and his counterpart from Cepyme, Gerardo Cuerva, attended the inauguration of the Minister of Labor and second vice president, Yolanda Díaz, who made clear her intention to raise the minimum wage for next year and issued a warning that could give clues to her will. By saying that "a young person who earns less than 1,300 euros cannot be satisfied" because with that salary he does not make ends meet.

In an attempt to provide security to companies, the employers' association has not only launched this suggestion, but also wants to set the increase in the SMI for 2025: "With this proposal, the SMI for 2024 would stand at 1,112.40 euros per month for 14 payments (15,573.6 euros per year) and, by 2025, at 1,145.77 euros per month for 14 payments (16,040.78 euros)", Designates.

The employers stress that the increase in the minimum wage they are proposing is above the 2% salary increase applied to civil servants for 2024 and is in line with what was agreed with the unions in the Agreement for Employment and Collective Bargaining (AENC).

Although they are in favour of this increase, they do demand as an unavoidable condition that the Government change the management of public contracts, to prevent all companies that have contracts with the Administration from suffering an increase in costs (by having to update the salary of employees who receive the SMI) and, however, do not receive a higher amount for offering the service. The latter has already happened this year and has harmed many companies, as reported by EL MUNDO.

"This proposal has as a sine qua non condition the modification of the regulations on price revision in public sector procurement processes, to pass on the increase in the SMI in the contracts in execution, as also included in the V AENC signed by the business organizations and the unions," they point out.

The employers' proposal will predictably be insufficient for the unions. UGT has already called for the minimum wage to be raised to €1,200, while CCOO has pointed to a similar figure. They are, in any case, initial positions with which the negotiation begins that will allow transfers.

Although the Government is not obliged to negotiate the increase with the social partners, it will bring its proposal to the negotiating table after learning of the report of the Ministry's Committee of Experts - in charge of setting the average wage in Spain and then seeking that the minimum wage is equivalent to 60% of that - and will seek a figure that will allow an increase in the average salary agreed with all parties to be announced.

Article 27.1 of the Workers' Statute states that "the Government shall establish, after consultation with the most representative trade unions and business associations, annually, the minimum interprofessional wage, taking into account: the consumer price index, the national average productivity achieved, the increase in the share of labour in national income, and the general economic situation".

The employers' associations claim to have taken these precepts into account when launching their proposal and take advantage of the statement to ask for "a system of deductions applicable to the agricultural sector, with a 20% reduction on the business quota for common contingencies, which would be added to the incentives already in force", as it is a sector directly affected by the incidence of the Minimum Wage and that has difficulties in assuming cost increases.