Minister Elma Saiz assures that the Minimum Interprofessional Wage will continue to rise in 2027 and be exempt from income tax, although the amount is not yet set.
According to cronista.com, the Minister of Inclusion, Social Security and Migration, Elma Saiz, stated this Monday that the Government will continue to raise the Minimum Interprofessional Wage (SMI) in 2027 and will maintain its exemption from income tax (IRPF).
The exact amount for next year is still not confirmed or approved. The Ministry of Labour, led by Yolanda Díaz, had initially proposed an increase in line with inflation, of around 4.9%. The unions CCOO and UGT are demanding a higher increase, of around 7%, which would place the minimum wage above 1,300 euros gross per month over 14 payments. Currently, it stands at 1,221 euros gross per month over 14 payments.
In an interview on the SER network, Saiz explained that the expert commission is convened to present its recommendations on the increase.
“The expert commission is convened and they have to give their recommendations.”
The minister added that the Government will update the deduction so that those earning the SMI do not pay income tax. The announcement could be made before the general elections on 29 November.
The year 2024 was the last in which the income tax threshold was adjusted to the SMI. Recipients continue to be exempt from this tax thanks to a deduction for low incomes introduced in 2025 and extended for 2026.
Saiz also criticised the opposition from the leader of the PP, Alberto Núñez Feijóo, to the increase in the minimum wage, reproaching him for being unaware that the SMI is exempt from taxation. She asked the PP for “a bit of seriousness, a bit of rigor” when referring to half of the population, according to EFE.
For 2026, workers earning the SMI, of 17,094 euros gross per year, can apply a deduction of up to 590.89 euros, which offsets the income tax corresponding to those earnings. Those who earn only the minimum wage, 1,221 euros gross per month over 14 payments, may not have any income tax to pay on those earnings.
The Tax Agency indicates that workers with labour income above the SMI can also benefit, as long as they do not exceed 20,048.45 euros gross per year. In that case, the deduction decreases progressively as salary increases.
Within the coalition Government, the application of this deduction has generated differences on how to ensure that those earning the minimum wage do not have to pay income tax.
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