Minimum wage 2027: government proposes €1,286 a month

The Ministry of Labour has published a draft decree: from 1 January 2027 Spain’s minimum wage will rise by 5.3% to €1,286 gross a month over 14 payments. That is more than the experts recommended. Comments on the draft are accepted until 16 November.

Late on 4 November the Ministry of Labour posted on its public participation portal a draft royal decree setting the minimum wage (SMI) for 2027. The figure came in above expectations: only the day before, the ministry’s expert commission had proposed a 4.9% rise, while the draft says 5.3%.

📍 What it means in euros

The minimum wage is currently €1,221 a month. Under the draft it becomes €1,286 gross over 14 payments, €65 more, and no less than €18,004 a year. The daily rate is €42.87. Temporary workers employed by the same company for no more than 120 days get at least €60.88 per working day, and household staff paid by the hour get €10.06 per hour actually worked, with all payments included.

📍 Why more than the experts advised

On 3 November the expert commission proposed linking the rise to October’s flash inflation figure of 4.9%, or €1,281 a month. In the explanatory report on the decree, the ministry says it took that figure and added 0.4 points: in 2026 average inflation from January to October was 3.5%, while the minimum wage rose by only 3.1%, so minimum-wage earners lost some purchasing power.

📍 What it means on the Costa Blanca

The coast has a lot of work in hotels, bars, cleaning and home care, and many seasonal contracts, so the rise will mainly affect these people. If you employ a home helper or a seasonal worker yourself, from January the pay in the contract cannot be below the new amounts. Employers should also bear in mind that the minimum Social Security contribution base is tied to the minimum wage.

📍 What happens next

For now this is a draft. Citizens and organisations can send comments until 16 November at 23:00 through the ministry’s portal, which requires a digital certificate or Cl@ve. The ministry discussed the amount with the CCOO and UGT unions and the CEOE and CEPYME employers’ organisations. The decree then has to be approved by the Council of Ministers; no date has been given yet. Under the draft, the new amounts apply from 1 January to 31 December 2027.