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MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
SPAIN DATA
The Spanish Government and labour unions have agreed to raise the national interprofessional minimum wage (IMW) by 5% in 2024, to a monthly minimum of E1,134pm, implying annual earnings (in 14x instalments) of E15,876pa.
- Data from Spain's latest wage structure survey (released in June '23 but containing data to 2021 only) indicates that 4% of full-time workers had earnings below the IMW (which was E13,370 at the time), with an additional 52% of workers with earnings between 1-2x the IMW.
- The chart below (from the June '23 survey), suggests just over 500,000 people had annual earnings just above the minimum wage threshold in 2021 (around 2.5% of the ~20.2mln people employed in Spain in Q4 '21).
- A back-of the envelope calculation (noting that around 86% of employed persons were in full-time roles in Q4 '21) suggests that a minimum wage increase should therefore affect around 6-7% of full-time employees in Spain (assuming proportions have remained roughly stable). This estimate excludes any spillover effects further up the pay distribution.
- Bloomberg reports that "the government has said it aims to increase the floor until it equals 60% of average salaries, in line with EU recommendations".
- The 2022 Economically Active Population Survey estimated that average wages for full-time workers were E2,341pm. This implies an 24% gap between the current minimum wage and the assumed target. Including part-time workers, average wages were E2,128, indicating a 13% gap.
- Note that PM Sanchez has just begun his latest 4-year term. Thus far, he has raised minimum wages by over 50% in the 5.5 years in office.
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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