The Spanish government has reached a political agreement to address tax concerns related to the minimum wage increase for 2025. The deal introduces a tax deduction ensuring that workers earning the minimum wage will not pay income tax that year.

This resolves tensions between Vice Presidents Yolanda Díaz and María Jesús Montero, who had clashed over the issue.

Díaz argued that taxing the minimum wage violated a government pact to ensure it represents 60% of the average salary.

Montero emphasized the need for proportional contributions to public funds as wages rise.

The agreement avoids a parliamentary veto and ensures compliance with European social standards.