Treasury Minister Arcadi España calls for caution regarding a possible amendment to public contract law that would allow the transfer of minimum wage increases to labour-intensive contracts. The Government continues to analyse the evolution of these contracts.
Treasury Minister Arcadi España has requested "caution" in addressing a potential amendment to public contract law that would allow for the transfer of cost increases resulting from the rise in the minimum interprofessional wage (SMI) in labour-intensive sectors. He made this request during his speech in the Senate, in response to a question from PNV senator María Dolores Etxano, as reported by infobae.com.
Etxano urged the Government for more flexibility in public sector service contracts to cope with salary increases resulting from the SMI and collective agreements. "There are service contracts where labour constitutes the main cost component, and when those costs increase during execution due to a rise in the minimum wage or collective bargaining, the current price review system does not provide an adequate response," the senator explained.
The minister acknowledged that the salary component has a "fundamental impact" on the costs of these companies, but insisted on the need for caution regarding an amendment that raises "doubts" from the perspectives of "opportunity, efficiency, and equity."
"Public procurement cannot become an island, a space different from the rest (...) this would create different treatment between companies contracting with the Administration and the set of companies operating in the market. Furthermore, we must preserve legal certainty and equality among bidders," España argued.
During the negotiation of this year's minimum wage, changes to the desindexation law were proposed as a way to compensate companies most affected by the SMI increases, a demand shared by both employers and unions, but which ultimately did not go ahead due to the opposition from the Treasury Ministry.
The Government, España concluded, "will continue to analyse the evolution of these contracts and the difficulties they face."
On another note, regarding the implementation of the new invoice verification system Verifactu, the Treasury head defended that efforts are being made for a "gradual, coordinated, and careful" implementation with small and medium-sized enterprises (SMEs). The Government decided to postpone the entry into force of the Verifactu regulation, which requires companies and professionals to adapt their billing IT systems to advance the fight against fraud, until 1 January 2027 for those taxed under corporate tax and until 1 July of that year for others.
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