Small companies are the most affected by an increase in the SMI, since a new increase would represent 70% of the average remuneration


The increase in the Minimum Interprofessional Wage (SMI) of 5% would imply that the effective minimum wage cost for the employer, that is, what an employer pays for a worker, would increase to 1,990 euros per employee per month, taking into account all costs and holidays.

This is clear from the study ‘Impact of the increase in the SMI on Spanish SMEs’ prepared by Cepyme, which states that if the SMI follows the expected evolution for the average full-time salary and increases by 5%, it would reach 1,135 euros. net by 2024, which would be equivalent to 61% of the average full-time net salary.

However, the impact on SMEs would be greater, since this increase in the SMI to 1,135 euros would mean that the minimum net salary would reach 70% of the average full-time salary in small companies, which represent 99% of the business fabric of Spain.

In the study, it is pointed out that this salary increase is not backed by an increase in productivity – production per employee -, since the increase in the SMI in Spain in the last five years has been 46.8%, while Productivity fell 3.8% for this period.

From Cepyme, they have called it “counterproductive” to separate wage growth from the evolution of productivity and have recalled that a salary is “remuneration for work done.”

Thus, business sources have criticized the political and partisan use that is being made of the increase in the SMI and have indicated that an increase in the minimum wage should be the response to an improvement in productivity in the country, something that is achieved by having “better companies”.

Furthermore, they have pointed out that the Government’s “interference” in the SMI is “interfering” in more than 4,000 negotiation tables in Spain, since the SMI is altering the salary tables that social agents have been negotiating for many years. “Salaries cannot be determined by royal decree, that is an intervention of the economic system. It is not valid,” said sources have pointed out.

In the study carried out by Cepyme, it has been pointed out that the increase in the SMI in the last five years has prevented the creation of 163,000 jobs in Spain, especially jobs related to young groups and people without experience and/or training.

Thus, as explained in the study, until 2018, those employed in elementary and non-elementary tasks grew at the same time, but since the SMI began to be raised, those employed in elementary tasks grew by a third of the rest of the employed. , with an increase of 3.2% and 9.7%, respectively, between the third quarters of 2018 and 2023.

On the other hand, the study also points out that the SMI between 2018 and 2023 has grown in Spain above the average of advanced countries. Thus, it has increased by 46.8%, while the average increase has been 30.5%.

Likewise, in real terms, Spain was the second country where the SMI grew the most – once inflation was discounted – of the 34 most advanced economies in the world, since an increase of 30.2% was recorded, that is, 2 .5 times greater than the average increase for these countries. TERRITORIES AND SECTORS MOST AFFECTED

If the impact by territory is taken into account, in 13 autonomous communities, the SMI already represents more than 60% of the average full-time salary, a higher percentage than that set at the national level. Thus, Extremadura would be the most affected, since this increase in the SMI to 1,135 euros would represent 72.8% of the average regional salary.

However, Cepyme has highlighted that the small company in emptied Spain would be the one that suffers the most from this impact of the salary increase, since in 26 provinces, an increase in the SMI to 1,135 euros would exceed 75% of the average provincial salary.