Minister Elma Saiz assures that the minimum wage will remain exempt from income tax after its increase in 2027. The legal reform that guarantees this still needs to be approved.
According to laSexta, the Government spokesperson and Minister of Inclusion, Social Security and Migration, Elma Saiz, has stated that the interprofessional minimum wage (SMI) will continue to be exempt from income tax after its planned increase for 2027. She made this statement during a radio interview on Monday.
Saiz explained that the expert commission has already been convened and must issue its recommendations regarding the increase of the SMI. The minister added that the Government will work to make it a reality.
“We will do the work to make it a reality”
Workers earning the SMI in 2026, set at €17,094 annually, can apply a deduction of €591, ensuring they do not pay tax regardless of their personal circumstances. Those earning between the minimum wage and €20,000 gross per year can also apply the deduction, although the amount is lower and decreases.
The income tax threshold was last adjusted to the SMI in 2024. The deduction for low incomes was introduced in 2025 and expanded for 2026.
The tax exemption for the SMI requires a legal reform that must be approved by the Permanent Deputation or, presumably, the new Government that will emerge from the polls once 2027 begins. Saiz has criticized the leader of the PP, Alberto Núñez Feijóo, for being unaware that the SMI is tax-exempt.
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