A new political clash has emerged within the Spanish government over the taxation of the recently proposed minimum wage increase.

Vice President Yolanda Díaz and Finance Minister María Jesús Montero are at odds regarding whether the €50 monthly raise in the minimum wage should be subject to income tax.

Díaz argues that exempting the increase from taxation would protect low-income workers, while Montero emphasizes the importance of "fiscal pedagogy" to ensure fair contributions to public funds.

The government has yet to decide if the raise will be taxed, a move that could cost workers an average of €300 annually.

This debate follows years of exempting minimum wage increases from taxation, raising questions about the government's fiscal priorities.

The final decision is expected to be made during the upcoming Council of Ministers meeting.