ALBAWABA — The government of Spain on Tuesday announced its approval for an 8 percent increase in the minimum wage even though the country was reeling from inflationary pressures.
With inflation at 5.8 percent in January, after peaking at 10.8 percent in July, the highest level in 38 years, Prime Minister Pedro Sanchez said the government previously committed to setting the minimum wage at 60 percent of the average Spanish salary.
The announcement, the fifth wage increase under Sanchez's premiership, comes just months before municipal polls in various regions and a general election by year's end.
Spain traditionally makes salary payments in 14 monthly payments per year, with the extra paychecks typically getting paid in July and December.
"We're going to approve a new 8 percent increase in the minimum wage to reach 1,080 euros" gross across 14 months, Sanchez told the Senate upper house of parliament.
"In 1999, a Spaniard needed to dedicate four annual salaries to buy an apartment. Today, he or she needs to spend more than twice as much, eight annual salaries," Sanchez said as he justified the increase in the upper house.
The unions had pushed for a higher increase but hailed the announcement anyway, while representatives of Spain’s main business organization CEOE were displeased, saying their views where not taken into account, arguing that companies also suffer from inflation while requesting only a 4 percent raise.
"There will be some 2.5 million beneficiaries and it will have a greater impact on women, young people, those with temporary contracts or working in agriculture or the service sectors," Secretary General of the Workers' Commissions Unai Sordo tweeted.
