Tensions are rising within Spain's coalition government over whether the new minimum wage of €1,184 should be subject to income tax (IRPF).

Finance Minister María Jesús Montero argues that the wage increase justifies taxation, as it is no longer a subsistence income.

Meanwhile, Labor Minister Yolanda Díaz opposes the move, advocating for an exemption and leaving room for negotiation.

Despite public displays of unity, such as a shared embrace at a recent event, the two leaders remain at odds.

The Socialist Party (PSOE) insists the decision is final, citing potential revenue losses of €2 billion if exemptions are granted.

Díaz, however, warns that taxing vulnerable workers contradicts progressive values.

With no signs of compromise, the debate continues to strain the coalition.