The Government will increase the Minimum Wage and the cost of dismissal

11/25/2023 at 10:29

CET


The new executive wants to revalue the SMI and wants to force companies to pay high compensation for unjustified dismissals

The new Government of Spain is already underway and the ministers are already picking up their portfolios from their respective positions to implement their new measures. One of those plans that they want to implement as soon as possible is the new working day, which has made so much noise since the PSOE and Podemos They presented it a few weeks ago.

Yolanda Díaz, who returns to head the Ministry of Labor, intends to propose it to Congress as quickly as possible. The new law will include, in addition to the weekly reduction from 40 to 37.5 hoursthe increase in the Minimum Interprofessional Wage (SMI) and compensation for unfair dismissal.

“We are immediately going to call on social agents to continue raising the Minimum Interprofessional Wage”this is how blunt the Minister Yolanda Díaz about his plans for the new legislature. The Government wants to bring together all the parties to carry out a new increase in the SMI, the fourth since Pedro Sánchez is in charge of the Moncloa.

Minimum salary has risen 47% in the last 5 yearsgoing from 736 euros when Mariano Rajoy governed to 1,080 that were established last year. In this period of time, the executive has faced a crisis caused by the COVID-19 pandemic and has continued to increase the base salary of all workers.

Negotiations to establish the new salary will not be easy. On one side, The unions ask the Government for speed to sit down and talk. On the other hand, the employers believe that an increase will seriously affect companies.

According to the Ministry of Labor website, all parties must agree: “the Government will set annually, after consultation with the most representative trade union organizations and business associations, the “Minimum Interprofessional Wage”, both for permanent workers and for temporary or temporary workers, as well as for domestic employees, taking into account the Consumer Price Indexthe average national productivity achieved, the increase in the participation of labor in national income and the general economic situation”.

The value that unions put

The UGT wants a minimum salary of 1,200 euros, to help workers face the rise in prices that is a consequence of the high inflation suffered by many products. This union also advocates requiring by law that companies pay a high mandatory compensation to its workers for unfair dismissal.

This will be one of his greatest demands for the new executive who welcomes the idea. Although quantities have not been discussed, they have asked to implement a minimum compensation of six months, regardless of the seniority of the worker. According to some estimates, workers who lose their job suddenly and without justification they will receive a minimum of 7,560 euros for those who are full-time, on the basis that the minimum salary is 15,120 euros per year.

This union will also ask that 45 days of compensation per year worked are recovered for unfair dismissal that existed before the 2012 labor reform, and not the current 33. Other measures that will require the government will be to recover the processing salaries in dismissals without justified cause and, also, grant the worker the power to decide whether to return to their position or not, instead of the employer making this decision.

ttn-25