Spain's Minimum Wage in 2026: €1,221 a Month — Everything You Need to Know

Spain's 2026 Minimum Wage: The Key Number

Spain's Minimum Interprofessional Wage (Salario Mínimo Interprofesional, or SMI) for 2026 has been set at €1,221 per month, paid across 14 payments per year, for a total annual gross income of €17,094.

The Council of Ministers approved the Royal Decree setting the new rate on 17 February 2026, following agreement at the Social Dialogue table with Spain's two major trade union confederations, CCOO and UGT. The regulation was published in the Official State Gazette (Boletín Oficial del Estado) on 18 February 2026, and is effective retroactively from 1 January 2026.

The rise represents a 3.1% increase on the 2025 SMI — and the eighth consecutive increase approved by the current government since 2018, when the monthly minimum wage stood at just €735. The cumulative increase over that period is 66%.

Who Benefits?

The new rate applies to all workers in Spain regardless of sector — agriculture, industry, and services — and covers:

• Permanent employees (trabajadores fijos) across all industries
• Fixed-term workers whose total service with the same company does not exceed 120 days
• Domestic workers — including specific provisions for those paid on an hourly basis

In total, the increase is estimated to benefit approximately 2.5 million workers across Spain.

The Daily Rate

For activities where wages are set on a daily rather than monthly basis, the minimum is €40.70 per day. This rate applies to the legal working day in each activity and does not include, for daily wages, the proportional part of Sundays and public holidays.

If a worker works a shorter-than-standard working day, the minimum wage is paid on a pro rata basis — proportional to the hours actually worked.

Special Rules for Fixed-Term Workers (Under 120 Days)

Workers on fixed-term contracts whose total service with the same employer does not exceed 120 days have specific entitlements under the 2026 SMI. In addition to the minimum wage, they must receive:

• The proportional part of the remuneration for Sundays and public holidays
• The two extraordinary bonuses to which every worker is entitled as a minimum — each equivalent to 30 days' salary

For these workers, the minimum amount may not be less than €57.82 per legal working day in the relevant activity.

Domestic Workers: Hourly Rate

For hourly domestic workers employed on an external (non-live-in) basis, the 2026 minimum wage is set at €9.55 per hour worked. This covers cleaners, carers, and other domestic workers paid by the hour rather than on a monthly salary basis.

Is the SMI Gross or Net?

The €1,221 per month figure refers to the gross wage — the total amount on the payslip before deductions. However, there is an important and favourable rule for minimum wage workers:

People receiving the SMI are exempt from paying Personal Income Tax (IRPF). This means workers at the minimum wage level do not pay income tax on their earnings, making the effective take-home pay higher relative to the gross figure than it would be for workers earning above the threshold.

Social security contributions (cotizaciones a la Seguridad Social) still apply in the normal way.

Does the Increase Apply Retroactively?

Yes. Although the Royal Decree was approved in February 2026, the increase applies retroactively from 1 January 2026. Workers who were paid at the previous rate in January should receive the difference as back pay from their employer.

Are Wage Supplements Included in the SMI?

No. The minimum wage figure does not include wage supplements (complementos salariales). To the SMI must be added, where applicable and in accordance with collective agreements and individual employment contracts:

• Wage supplements (for seniority, night work, hazardous conditions, etc.)
• The amount corresponding to any guaranteed increase on the time wage in premium or production incentive systems

This means the SMI is a floor, not a ceiling — employers must pay at least €1,221/month, plus any supplements specified in the relevant collective agreement or contract.

The Journey From €735 to €1,221

Spain's minimum wage has undergone a dramatic transformation since 2018. Under the current government, eight successive increases have taken the SMI from €735 per month in 2018 to €1,221 per month in 2026 — a rise of 66% over eight years.

The stated policy objective behind these increases is to bring the SMI to 60% of the average wage in Spain — a benchmark set by the European Committee of Social Rights in application of the European Social Charter. This target has been a central reference point in each round of Social Dialogue negotiations.

What This Means for Employers

All employers in Spain — including those employing domestic workers, seasonal agricultural labourers, and part-time staff — must ensure that no worker is paid below the applicable minimum rate from 1 January 2026. The retroactive nature of the increase means any employer paying the 2025 rate in January 2026 must calculate and pay the difference.

Workers who believe they are being paid below the legal minimum can report this to the Labour Inspectorate (Inspección de Trabajo y Seguridad Social), which has powers to investigate and sanction employers found to be in violation.

What This Means for Expats Working in Spain

For non-Spanish nationals working in Spain — whether EU citizens exercising free movement rights or non-EU nationals with work permits — the SMI applies equally. There is no distinction by nationality: all workers legally employed in Spain are entitled to the same minimum wage protections.

For expats employing domestic staff — cleaners, gardeners, carers — the new hourly rate of €9.55 applies to any external domestic worker, and they must be properly registered with Social Security. Paying below the legal minimum exposes the employer to legal risk regardless of any informal agreement.

This article is based on official information from La Moncloa (the Spanish government's official communications office), published February 20, 2026, and Royal Decree 126/2026 of 18 February 2026. This article is for informational purposes only and does not constitute legal or employment advice. For advice specific to your situation, consult a qualified employment lawyer or gestor.