Is there a minimum wage in Spain? And if so what it?
A. An annual, monthly and hourly minimum wage (salario minimo) does indeed exist. According to Decree 1793/2003, the applicable minimum salary for 2004 for workers in agricultural, industrial or service activities, irrespective of gender or age is as follows:
* ?15.35 per day (including proportional amount of extra payments).
* ?460.50 per month (including proportional amount of extra payments).
* ?6,447 per year.
The minimum salary takes into account both cash payments as well as payments-in-kind. It is also understood that it is applicable to the legal working day for each activity.
The minimum wage set for all occupations, trades and economic sectors. Its main purpose is to ensure that pay is sufficient to meet needs. The national minimum wage was first set in Spain in 1963 and has since been adjusted at regular intervals, usually each year, although the law provides for half-yearly adjustment. It is set at a daily or monthly rate, always based on normal working hours , and distinguishes between minors and adults. It is set and adjusted in accordance with various economic indices ( productivity , retail-price index, etc.), and is fully protected from seizure on behalf of creditors. Its amount (64,920 pesetas per month in 1996) is modest and is usually far below national average earnings, and it is therefore calculated that only some 400,000 workers are directly affected by the level of the minimum wage. However, its indirect repercussions are important since it serves as a point of reference for collective pay negotiations and for the setting of social security benefits and pensions.
