The Minister of Labor, the podemite Yolanda Díaz, announced with great satisfaction that the Government had managed to fulfill another of her promises: to raise the Minimum Interprofessional Salary (SMI). However, his joy was not complete since, in reality, he had not been faithful to the agreements signed with the PSOE in his Government coalition to raise the SMI “immediately” to 1,000 euros. This has remained at 950 euros per month in 14 payments, so that workers who charge the SMI will add 700 euros to their account, half of what they had been promised.
With this increase, the SMI has increased in just 12 months by almost 29% -22.3% in 2019 and 5.5% in 2020-, from 735 euros in December 2018 to 950 euros approved now. However, we only have to go back two more years, when Mariano Rajoy was in charge of the Government, to find that the growth rate of the SMI has risen 40%. That is to say, the PP Executive raised it in just two years by 12% – in 2016 by 4% and in 2017 by 8% -. Between 2012 and 2015, the SMI remained frozen because of the great crisis.
According to data from the National Statistics Institute (INE), the development of the SMI has evolved from 300 euros per month in 1990, which totaled 4,207 euros at the end of the year, to 950 euros approved this week, with revenues of 13,300 euros in 2020. If we go back ten years back in time, until 1980, the amount the SMI that was paid at that time may sound even ridiculous at this time, since the workers who received the minimum salary received 135 euros per month. Since 1990, the minimum wage in Spain has revalued 216%.
The highest incidence of the last rise of the SMI will take place in small businesses, micro-SMEs and self-employed workers, with the service sector and administrative activities that can have a more negative impact in terms of hiring.