Spain Extends 2025 Minimum Wage Standard into 2026
The Spanish government has passed a Royal Decree to extend the 2025 Interprofessional Minimum Wage (SMI) into 2026, aiming to maintain legal stability and avoid a potential gap.
This measure ensures the continuity of the minimum wage while a new standard is being negotiated, and it provides temporary certainty for related visa applications.
Details of the Minimum Wage Extension
According to the Royal Decree published on December 24, 2025, Spain’s Interprofessional Minimum Wage (SMI) will remain at €1,184 per month (paid in 14 installments). This extends Royal Decree 87/2025, which originally applied to the year 2025.
The decree specifies that this extension will be in effect until a new Royal Decree for the 2026 minimum wage is approved. The government emphasized that this move is intended to provide legal certainty and prevent any interpretative ambiguities regarding the wage’s validity.
Negotiation Background and Stances
Spain’s minimum wage is typically updated in January each year through tripartite dialogue between the government, trade unions, and employer organizations.
Negotiations that began earlier this month failed to reach a consensus: unions are demanding a 7.5% increase, employers are proposing 1.5%, and an expert committee has recommended a range of 3.1% (if tax-exempt) to 4.7% (if taxed).
Due to the lack of an agreement and the fact that the 2026 national budget has not yet been finalized, the government opted to extend the current standard. The Ministry of Labor plans to resume negotiations after the holidays and present an initial proposal.
Potential Increase and Retroactive Effect
Once a new standard for 2026 is agreed upon, it will have a retroactive effect, applying from January 1, 2026. A similar situation occurred in 2025.
This arrangement ensures that workers will not lose out on a potential raise due to negotiation delays.
Impact on Immigrants and Visas
Several residence permits, including the digital nomad visa, highly qualified professional, and remote worker categories, have income thresholds calculated as a multiple of the SMI.
The extension of the current standard means these thresholds will remain stable for the time being. For a main applicant, the monthly income requirement will generally stay around €2,370 to €2,760, which facilitates planning for both companies and applicants.
