New minimum salary in Spain

The Royal Decree 231/2020 of 4 February 2020, published in the Official State Gazette on 5 February, sets out the Spanish Minimum Salary (hereinafter, “MS”) as of 1 January 2020. Therefore, the applicable salary for full-time employees in 2020  will be of €31.66 gross per day or €950 gross per month in 14 payslips, that is, the annual MS will be €13,300 gross (an increase of 5.56% since 2019).

In this regard, it should be noted that for the calculation of the MS, only the cash payment is taken into account. Therefore, the salary in kind cannot lead to the reduction of the amount of the MS. Moreover, note that a specific amount is established for temporary Employees whose services to the same Company do not exceed from one hundred and twenty days: €44.99 gross per working day.

It is also important to note that, even though the applicable Collective Bargaining Agreement may provide a minimum salary below the MS for certain occupational groups since they have not been updated accordingly to this date. In this regard, note that salary increases as a consequence of the new MS shall only take place if there are no salary items that allow the application of set-off rules (a case-by-case analysis is recommended).