Elma Saiz assures that the government will raise the minimum wage again in 2027 and that it will remain exempt from income tax. The legal reform necessary for that exemption still has no date.
According to Notimérica, the government will raise the minimum interprofessional wage (SMI) in 2027, and the wage will continue to be free from taxation under the Income Tax for Individuals (IRPF). This was confirmed on Monday by the Minister of Inclusion, Social Security and Migration, Elma Saiz, in an interview on Cadena SER. The announcement could come before the general elections on 29 November.
Saiz accuses the president of the PP, Alberto Núñez Feijóo, of technically misunderstanding how this wage is taxed. During the legislature, the Ministry of Finance, then led by the former vice president María Jesús Montero, and the Ministry of Labour, headed by Yolanda Díaz, have clashed several times over the tax exemption.
The SMI has been revalued by 66% between 2018 and 2026, rising from 735.90 euros to 1,221 euros per month. Its increase depends on the government, following consultation with social agents, and does not require validation in Congress.
The exemption from IRPF, on the other hand, requires a legal reform that must be approved by the Lower House. It could be processed in the Permanent Deputation or in 2027, in the new Congress resulting from the elections.
According to sources from the Treasury, that reform does not have a specific date. The same sources indicate the expected order:
“That has to come after the SMI is raised”
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