Spain's minimum wage (SMI) is poised for another increase, benefiting around 2.5 million workers.

A government-appointed panel of experts has proposed two options: a 3.44% or 4.41% rise, translating to monthly increases of €39 or €50. This would bring the SMI to €1,173 or €1,184 per month in 2025. The move aims to maintain the SMI at 60% of the average salary, in line with the European Social Charter.

While the increase boosts purchasing power and reduces wage inequality, it also raises concerns for small businesses facing higher costs.

Unlike previous years, the government may not adjust income tax thresholds, potentially impacting low-income workers.

Negotiations with unions and employers will finalize the decision.