The salary of domestic workers will rise 3.5% if the minimum wage reaches 1,000 euros in 2022

The year 2022 started with
the minimum wage (SMI) frozen at 965 euros per month
, but with a view to the Government negotiating a new rise with the social agents. The Executive have already expressed their willingness to undertake a new increase this year to reach a percentage of 60% of the average salary at the end of the legislature. This new increase would be added to the last increase approved less than five months ago in a two-way pact between the Executive and the union organizations that did not have the support of CEOE or Cepyme. The businessmen then defended that Spain was not in the right scenario to raise salaries with the aim of

not hinder the economic reactivation or the recovery of the labor market.

If finally the Executive decides to undertake a new increase in the minimum wage, that of
Household employees will be one of the groups that will be most affected by the measure
. Specifically, if the minimum wage reaches 1,000 euros in line with the demands of the unions, the variation with respect to 2021 of the amount per hour would be 3.57%, going from 7.55 to 7.82 euros. In sum, since 2016 the rise in the minimum hourly wage of these workers would accumulate an increase of 50%. For full days from 40 hours a week, the increase would be from 965 to 1000 euros, that is, 3.62%. Furthermore, the increase resulting from this government decision could be retroactively counted, although both the final amount and the date to be set as the item have yet to be determined.

According to calculations made based on a minimum wage of 1,000 euros
by the Aiudo platform
1166.66 euros gross per month in 12 payments -including the extras proportionally- to be paid to the hired domestic employees about 40 hours a week; 1,094.80 euros per month for the 35-hour week; 938.40 a month for 30 hours a week; 782 euros per month for 25 hours; 625.60 euros per month for 20 hours and 469.20 euros per month for 15 hours.

Regarding the impact that this new increase will have if it materializes in the current year, the Aiudo platform underlines that the 22% increase in the SMI approved in 2019 was a blow to the occupation in this sector. From the platform, they also affect the millionaire figures that remain unaccounted for due to irregularities in this sector. "We hope that it will not happen like in 2019 when an increase in the loss of employees was alerted and, in parallel, of a reduction of hours in the working day of the workers who continued to be registered", warns the CEO of Aiudo, Daniel Ibiza.


From Aiudo they believe that the Government should accompany the increases in the SMI and the updating of the salary table of domestic employees with bonuses and reductions for families in order to avoid promoting the underground economy or job losses. "We all support the improvement of the conditions of domestic workers and, therefore, we defend that the costs do not fall exclusively in the pockets of the families who hire," adds Ibiza.

Employer families must take into account that the monthly salary must be added the fee to be paid by Social Security due to the obligation to regularize the situation and register the contract. The rate of contribution for common contingencies based on the corresponding contribution will be 28.30%. This percentage is divided into an amount of 23.60% paid by the employer and 4.70% paid by the domestic worker and deducted from the gross salary. The total cost in contributions for domestic workers in 2022 in a full day of 40 hours per week is 308.99 euros.

As of today, the 20% reduction in the business contribution to the Social Security contribution for common contingencies for household employees registered since January 1, 2012. This reduction in fees will be extended with a discount of up to 45% for large families when the two ascendants carry out a professional activity as an employee or their own outside the home. "Different sources show that the general membership data are affected as a result of a rise in the SMI, as happened in 2019. This causes the need to reflect on whether to help employer families with more bonuses," says Ibiza .

It should be remembered that the last increase in the SMI was approved since September 28 of last year and entered into force retroactively as of September 1. The salary increase was 15 euros a month, from the previous 950 euros to the 965 euros in force today. The agreed variation was introduced in line with the recommendations of the Advisory Commission for the Analysis of the Interprofessional Minimum Wage, which called for a rise from 12 to 19 euros for the year 2021. However, the agreement signed between the Government and unions set the promise to revisit the SMI both in 2022 and 2023 with the goal of reaching 60% of the average salary before the end of the legislature, as determined by the European Social Charter signed by Spain.


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