Minimum Wage in Spain in 2025

For many reasons Spain became the ideal place for many expats. It is common, therefore, that many people wonder what is the minimum wage in Spain 2025 when looking for a job and earning money. In this article you will find relevant information about work and salaries in Spain.

What is the SMI in Spain?

The Salario Mínimo Interprofesional (SMI) is Spain’s legal minimum wage. It sets the lowest amount an employer must pay a worker for a full-time job, ensuring a basic level of income protection.

The SMI is reviewed and adjusted by the government, more particularly by the Ministry of Employment and Social Security in Spain, taking into account factors like inflation, economic conditions, and labor market trends. This means that it is not set by autonomous regions. It applies to all workers, regardless of their industry or contract type, and is typically paid in 14 installments per year.

Minimum wage in Spain 2025

Spain’s minimum wage continues to rise to keep up with economic changes. On February 12, 2025, the government approved a 4.4% increase, raising the Salario Mínimo Interprofesional (SMI) by €50 to €1,184 gross per month (in 14 payments), or €16,576 per year. This change directly benefits around 2.5 million workers, particularly women and young people in lower-paying or part-time jobs.

Minimum wage in Spain over the years

Over the past decade, Spain’s minimum wage has seen a steady rise, reflecting the government’s efforts to improve workers’ purchasing power and reduce income inequality. In 2015, the SMI was set at €756.70 per month, and by 2025, it has increased to €1,184 per month which is a significant boost driven by economic factors and labor policies.

Minimum wage in Spain over the last years.

The most notable jump occurred in 2019, when the wage rose by over 22% to €1,050, marking one of the largest increases in recent history. These adjustments aim to keep up with inflation and ensure fair wages, particularly benefiting low-income workers, women, and young employees in part-time jobs. However, rising labor costs have also sparked debates among businesses, especially small and medium-sized enterprises, about the potential impact on employment and productivity.

Minimum wage compared to other north European countries

Spain is ranked 20th out of the 124 countries in the worldwide minimum wage list. The minimum wage in Spain is lower compared with other north European countries. Nonetheless, salaries have been going up in the last decade.

In countries like Denmark, Sweden, or Norway, the minimum wage is much higher than in Spain, and the average salary is also significantly higher. The main reasons for this is a lower unemployment rate and a higher cost of living.

The lower cost of living makes it easier for businesses to afford to pay their employees less, which is attracting a lot of business to Spain but makes Spanish people want to work abroad.

Wage consistency

An employee’s pay can be in cash or in kind, but the in-kind cannot exceed 30% of the total remuneration. In-kind income is income that is not monetary. It comprises a wide range of employee benefits such as rent coverage, goods, and transportation costs.

Cost of living in Spain

Spain is a wonderful country to live in, but it can be expensive. The cost of living in Spain varies depending on the city you live in. In general, however, the cost of living in Spain is lower than in other countries in Europe. Some of the main expenses that you will have in Spain include rent, food, transportation, and utilities.

Renting an apartment in Spain can be expensive. The average rent for an apartment in a major city like Madrid or Barcelona is around €1,000 per month, so the minimum wage will not cover that. If you want to live outside of the city centre, your rent will be around €500 for a 1 bedroom, but you will have to commute to work. Transportation by bus is the cheapest way to get around town and is around €1 per ride.

Food in Spain is very cheap. You can find a meal for around €4-€5 at a fast-food restaurant or café. Grocery stores are even cheaper, you can get a full basket for around 20 euros. Utilities are cheap as well, you can pay around 20 euro’s per month for electricity and internet access.

Salary negotiation in Spain

If you’re considering a job in Spain, it’s important to understand salaries and the country’s minimum wage. Salary negotiation isn’t very common due to high unemployment, so companies typically set a fixed salary that candidates either accept or decline. That’s why it’s best to clarify the salary upfront to avoid wasting time.

Researching average salaries online can also give you a better idea of what to expect. When discussing job offers, ask about additional benefits like meal allowances, transportation support, or other perks that could enhance your overall compensation package.

Collective agreements in Spain

Many industries in Spain operate collective agreements. These agreements set salary levels and working conditions for specific groups of employees. Usually, these agreements are negotiated by the unions and employer’s associations at a national or regional level. This is to avoid wage differences between different companies or regions.

Every year, the unions send a proposal with the expected salary increase to the labour ministry for review. If it is deemed acceptable by the company or industry, the new salary levels will be incorporated. If your employment falls under a collective agreement, you could benefit from a higher minimum salary.

When you are not earning the minimum wage

If you’re not making at least the Spanish minimum wage, you should file a complaint with the Labour and Social Security Inspectorate. They will first evaluate your case. If they find that you have been underpaid, they will issue a fine to the company.

A word from SublimeSpain

Understanding Spain’s minimum wage is key for anyone looking to work and live here. While salaries may not match those of Northern Europe, Spain offers a lower cost of living, making it an attractive place for many expats. The steady rise in the Salario Mínimo Interprofesional (SMI) reflects the government’s effort to improve wages. However, it also raises questions about economic impact and job opportunities.

Whether you’re negotiating a salary, navigating collective agreements, or weighing up the cost of living, being informed helps you make better decisions. Spain remains a fantastic place to live and work, you just need to make sure you know what to expect before making the move.

Disclaimer: Information on this page may be incomplete or outdated. Under no circumstances should the information listed be considered professional legal advice. We highly recommend seeking guidance from a legal expert if you lack extensive knowledge or experience dealing with any of the procedures outlined in these articles.