CEOE's Executive Committee agreed on Tuesday to propose an increase in the minimum interprofessional salary (SMI) of up to 1.5% for 2026, reaching 1,202 euros gross per month in fourteen payments, subject to IRPF taxation. This proposal aligns with the raise planned for public employees and the goals of the European Minimum Wage Directive. Unions, meanwhile, advocate for a larger 7.5% hike.
The extraordinary Executive Committee of CEOE met on Tuesday, December 9, 2025, and decided to propose a modest increase in the SMI to the government for the coming year. According to the employers' statement, this 1.5% rise would bring the salary to 1,202 euros gross per month in fourteen payments, without IRPF tax exemption. The proposal aims to respect collective bargaining and is conditioned on compliance with the absorption and compensation rules in the Workers' Statute.
Business leaders argue that this measure aligns with the salary adjustment for public employees and the principles of the European Minimum Wage Directive, which promote a decent standard of living, reduction of in-work poverty, social cohesion, upward convergence, and narrowing the gender pay gap. "To respect collective bargaining, we condition this 1.5% increase on compliance with the absorption and compensation rules of the Workers' Statute," stated CEOE and Cepyme, led by Antonio Garamendi and Ángela de Miguel.
This stance contrasts with that of the CCOO and UGT unions, which a few weeks ago proposed a 7.5% rise to 1,273 euros monthly, also with mandatory taxation. Both sides have submitted their positions ahead of the expert committee advising the Ministry of Labor, which must develop two scenarios: one with and one without IRPF.
CEOE and Cepyme justify their restraint using 2024 data from the Active Population Survey (EPA), which covers sectors like agriculture and domestic services, unlike the 2023 Wage Structure Survey (EES) used by the government. Per the EPA, the current SMI already exceeds 60% of the net average salary, a key benchmark for its setting, amounting to 4.9% above what it should be. Following the ministry's method, no raise would be needed for 2026, but the employers opt for this limited increase to maintain balance.