Economy Politics Country 2026-01-12T22:33:31+00:00

Spanish Business Association Rejects Minimum Wage Hike

Spain's CEOE business confederation and ATA self-employed association have rejected the government's proposed 3.1% minimum wage hike for 2026, calling it 'unaffordable'. They claim it will reduce revenues and block negotiations on a reform of the self-employed contribution system. The government, in turn, plans to agree on the increase only with the unions.


Spanish Business Association Rejects Minimum Wage Hike

The CEOE's executive vice president has, in effect, closed the door to real negotiations between the Ministry of Labor and employers on a negotiated increase to the minimum wage (SMI) for 2026. As stated this Monday by Lorenzo Amor, the organization's president, an increase of this magnitude is 'unaffordable' for the self-employed who have employees, and he reiterated the proposal decided upon by the CEOE's Executive Committee in December. 'We would not have seen a bad thing with an increase between 1.5% and 2%, but 3.1% seems quite distant to us,' Amor said during the presentation of the barometer on the activity of the self-employed in 2025. The Government was forced to freeze the self-employed's contributions at the end of the year due to the lack of consensus to implement the system of contributions based on real income agreed with Escrivá in 2022. However, neither of these two aspects is being negotiated with the Executive, nor is the transposition of the directive that would enable the second aspect being considered. Lorenzo Amor criticized the Ministry of Social Security for not having held meetings since last October 20th and states they have no news of a new meeting to resume talks on the contribution reform. He considers the 15 existing brackets to be sufficient, despite the reform foreseeing increases until 2032, especially for the self-employed who earn more than 6,000 euros a month. The National Federation of Self-Employed Associations (ATA), integrated into CEOE, has rejected the increase in the minimum interprofessional wage (SMI) proposed by the Ministry of Labor for 2026, of 3.1% with a reduction in the personal income tax, which would mean reaching an annual gross figure of 17,094 euros. Therefore, Labor will end up agreeing on an increase only with the unions, as has been the case since 2021. But the freelancer idea has holes. ATA, the most representative association among the self-employed, justifies its rejection of a greater increase in labor costs by stating that the situation of the self-employed is not as buoyant as it seems due to the record number of affiliates to the RETA, 3.4 million workers working for themselves. This will mean lower revenues than expected for the pension reform committed to the European Commission. Stalemate in the self-employed reform: division in associations and silence from the Government Cristina Dolz Only the minority organization of self-employed workers currently supports the reform of the contribution system agreed three years ago between the three main associations and Escrivá. Amor completely rejects an increase in contributions because, in his opinion, 'we self-employed already contribute based on real income.' However, the relevant ministries reject it. Sources from the Ministry of Finance indicated last week that de-indexation will not be accepted due to the cost it represents for public administrations at a time of increasing spending needs, and sources from the Ministry of Economy ensure that the measure is not even being negotiated within the Government. In this line, he has proposed that Social Security 'dedicate itself to inviting self-employed workers who want and can to increase their contribution base' instead of applying general increases and has assured that ATA 'will not allow any contribution to be increased in 2026 because the extension is already in the BOE and in the contribution order.' Source: El Confidential According to its barometer, which includes 1,200 respondents, one in three self-employed (32.1%) saw their activity decrease in 2025 compared to the previous year, and one in four believes their activity will decrease throughout 2026 (25.6%). Rejection of future contribution increases The main demands of the collective for this year are not to pay the self-employed contribution while on sick leave (according to 53.8%) and the exemption from VAT for those who invoice less than 85,000 euros a year (demanded by 47%). UGT and CCOO will not prevent a 3.1% increase. The paradox of the new self-employed: professionals fleeing from or sinking into precariousness Guillermo Cid The profile of the self-employed worker in Spain has begun to change; there are no longer as many small traders or transport drivers, and the number of professionals with studies has skyrocketed. Furthermore, the last avenue to be explored, announced by Labor on January 7th, modifying the de-indexation law, has no room for progress. This is a demand reiterated by CEOE and Cepyme, but also by UGT and CCOO. In the last Agreement for Employment and Collective Bargaining (AENC), the need for companies to pass on the cost of SMI increases to contracts with public administrations was reflected. He also described the experts' report to calculate 60% of the average net salary as 'statistical chicanery' and maintains that the SMI is already above that ratio. Both the Second Vice President and Minister of Labor, Yolanda Díaz, and the unions, considered increasing the minimum wage below the inflation recorded in 2025 (2.7%) and that expected for 2026 (2.1%) to be insufficient.

Latest news

See all news