Dispute Over Minimum Wage Taxation in Spain

The First Vice President and Minister of Finance, María Jesús Montero, insists on making low-income workers pay taxes on the minimum wage, despite opposition from her colleagues. This measure aims to support public services amidst rising minimum wage levels.


The first vice president of the Government and Minister of Finance, María Jesús Montero, stated that she will not give up her position in the debate she is having with the Minister of Labor, Yolanda Díaz, regarding the obligation to pay taxes for a portion of low-income earners based on the newly increased minimum interprofessional salary (SMI) of 1,184 euros monthly by the Council of Ministers. In a press conference in Seville, Montero, who is also the general secretary of the PSOE of Andalusia, pointed out that "we all have to start making an effort" and clarified that only 20% of these workers would be affected by this measure.

In the midst of this debate, parties like Sumar, PP, and Podemos have presented legislative proposals in Congress to exempt from the Personal Income Tax (IRPF) workers earning the SMI in 2025. Contrary to the stance of her government colleague, María Jesús Montero considered taxing part of these employees as a leftist and progressive policy that ensures the financing of basic services such as healthcare and public education, fundamental for the Welfare State.

When asked if she had dialogued with Yolanda Díaz after the latter publicly expressed her disagreement regarding the elimination of the tax exemption for workers receiving the SMI without family responsibilities, the Minister of Finance did not respond directly but emphasized the importance of dialogue within the Government, hinting that communication should remain fluid. Montero, without mentioning Díaz directly, criticized those who seek to join the fiscal populism of the right.