August 7, 2020

The rise in the minimum wage is ahead of farmers and domestic workers

The rise in the Minimum Interprofessional Salary (SMI) has already left its mark. Although for the Secretary of State for Social Security, Octavio Granado, this increase has been a “success”, the negative effects of those alerting organizations such as the Bank of Spain or the Circle of Businessmen have not been expected. Granado itself has recognized "problems" in some sectors such as domestic employment or agriculture, where the real wage increase is between 11% and 15%, far from 22.3% established by decree almost a year ago.

November is a month traditionally with bad employment data, and this year has not been for less. Membership was reduced by 53,114 people, the worst figure since 2013. Regarding unemployment, this figure rose by 20,525 during the last month. After analyzing these data during the press conference on unemployment and affiliation, Granado concluded that the Spanish economy has absorbed "very well" the rise in the minimum wage to 900 euros. However, this optimism does not extend to all sectors. Household employees and farmers have been the first to suffer in their own flesh the bad omens that were around the increase in the SMI.

The Bank of Spain foresaw a destruction of 125.00 jobs, the equivalent of 0.8% of the 16 million full-time employees. The Businessmen's Circle also predicted in September negative effects for the “decretazo” of Sánchez. Specifically, John de Zulueta, president of the Circle, estimated that “the rise of the SMI will create a submerged economy, more unemployment and young people will give them less job opportunities. ”Finally, these forecasts have been met, although only in part. Granado explained that 13,000 people have stopped contributing to the household employee system because, by improving the salaries of other occupations, they have abandoned domestic employment. "They prefer to work in Glovo than to be domestic workers," he said. Instead, these vacancies have been replaced by 13,000 people in an irregular situation and, therefore, are not quoted To the system.

"You have to live with this reality," said Granado. Farm workers will also have to live with a salary increase below the average for the rest of the sectors. The number of hours declared in the agricultural field has decreased. This implies that farm workers They are no longer paying part of the extra hours, despite working them. This free work implies that there is a part of workers who instead of having seen their salary increase by 22.3% as a result of the rise in SMI, only their salaries have improved “11%, 12%, 13% or 14%”he explained. In addition, the Secretary of State for Social Security has pointed out that when employment and pay improve, people return to abandon agricultural employment and look for a job in the services sector.

Regarding the agricultural sector, Granado also said that today a meeting of the Observatory against fraud will take place with the general director of the General Treasury of the Social Security, Javier Aibar, in which one of the priority objectives will be agricultural work, because “ we can think that there may be some temptation to obscure the impact of the SMI by decreasing the number of overtime declared. ” Regarding the increase in the economy submerged among domestic workers, Octavio Granado considered that "it does not seem" that at this time the problems of the Spanish economy need or require a new regularization like the one made in 2005.

. (tagsToTranslate) Minimum Salary (t) Agriculture (t) Employment

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