Increase in the Minimum Interprofessional Salary in the year 2020

Increase in the Minimum Interprofessional Salary in the year 2020

Incremento del salario mínimo interprofesional en el año 2020

The Minimum Interprofessional Wage (“SMI”) is the minimum economic remuneration that is officially fixed by the State, and which any employer is obliged to pay to its employees. In this regard, on February 5, 2020, Royal Decree 231/2020 of February 4, which establishes the SMI for 2020 (“RD 231/2020”), entered into force, with retroactive effect from January 1, 2020, increasing it by 5.5% with respect to the SMI of the previous year. This amount is set at: (i) Daily minimum wage: 31.66 euros, (ii) Monthly minimum wage (14 payments): 950 euros, (iii) Monthly minimum wage pro rata in 12 payments: 1,108.33 euros, (iv) Annual minimum wage: 13,300 euros, including extraordinary payments, (v) Minimum wage for temporary workers: 44.99 euros (day), and (vi) Minimum wage for domestic workers: 7.43 euros (hour). Notwithstanding the above, RD 231/2020 also contemplates two cases in which the SMI is not applicable.

With the increase in the SMI, the employer sees an increase not only in the monthly salary of its employees but also in their social security contributions. Furthermore, as was the case with RD 1462/2018 of 21 December, which established the SMI in 2019, with the publication of the current RD 231/2020, its implications regarding the existence or not of Collective Agreements applicable in the company must be taken into account in order to update the minimum wages to the SMI. If there is no applicable Collective Bargaining Agreement in the company and/or employer, the minimum wage must be applied. A different question is whether the company and/or employer is governed by an applicable Collective Bargaining Agreement, and therefore, in order to adapt or not the Collective Bargaining Agreements to the IMS, the rules of compensation for absorption must be distinguished.

Likewise, and with regard to the application of the new IMS for 2020, it is worth recalling the link between it and the obligation provided for by Royal Decree Law 6/2019 on Urgent Measures to Guarantee Equal Treatment and Opportunities for Men and Women in Employment and Occupation (“RD 6/2019”), which consists of keeping a wage register. This entails, therefore, the adaptability of salaries to the current IMS, and otherwise, the possible application of monetary fines of up to 6,250 euros.

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