Labour begins process to update the minimum wage in 2027, with no figure agreed

The Ministry of Labour called a meeting of the advisory commission on the statutory minimum wage (SMI) for October 8 to begin preparing a recommendation on its update in 2027. The process is starting with the political calendar shaped by the general election on November 29: the Government wants to make progress before the election, although the meeting call does not mean that a definitive proposal or an agreement on the increase already exists.

The current SMI is €1,221 gross per month in 14 payments, equivalent to €17,094 gross per year. The commission, coordinated by Begoña Cueto, professor of Applied Economics, will prepare a report that, according to published reports, will propose a range for the update.

From the report to the Government’s decision

The experts’ recommendation is a first step, not approval of an increase. After the report, the Ministry of Labour plans to consult trade unions and employers’ organisations. The final amount is for the Government to decide and requires approval by the Council of Ministers.

The Ministry aims to complete the process before the election, but media coverage describes uncertainty over the timetable. In previous years, preparing the report and holding social dialogue have taken several months; moreover, an October meeting leaves little time to complete the various stages before November 29.

A tripartite agreement is also expected to be difficult. According to reports, employers’ organisations did not take part in the latest agreements on increases, and some media outlets say that trade unions and the Government remain at odds over previous commitments. Therefore, the Executive’s aim of making progress before the election does not mean that it will reach an agreement with all parties or that the increase will be approved by then.

A debate linked to inflation and purchasing power

The Ministry of Labour has argued that the SMI needs to be updated in response to rising prices and to protect purchasing power. Trade unions have also called for an increase; the specific figures reported are positions attributed to their representatives, not an official recommendation from the commission or a government decision.

The most recent precedent cited is the 3.1% increase approved for 2026, which raised the SMI to its current amount and was applied retroactively from January 1. That increase does not determine the percentage that will be proposed for 2027: the figure will depend on the new report and subsequent consultations.

For businesses, the meeting call marks the start of a process to monitor developments, not an immediate change to wage obligations. The current amount remains the benchmark until the Government approves an update. The election calendar may affect the pace of discussions, but the sources do not make it possible to take for granted when the new figure will be approved or what its amount will be.